Micro and Macro economics is an economic theory that was developed in the 1970's by two professors at Harvard University, Milton Friedman and Friedrich Hayek. The main theme of both these economists was that in a free market, the price system and supply and demand would play an equal part in determining the overall level of economic activity, allowing any market to adjust according to the needs of the consumer.
In the theory of micro and macro economics, however, there are certain variables that are considered to be important by the market. For instance, in a free market, it will allow any market to adjust based on demand and not necessarily based on supply and demand. Because this is the case, the supply and demand that occur in a free market are different in the micro and macro environment. However, because of the nature of demand in a free market, it will cause the price system to be in equilibrium.
With a free market, prices will adjust as the consumer's demands are met and his or her wants are satisfied. If you go to a restaurant that is run by one of these two, you will end up paying more for the food that you order than what you would have spent if you had gone to a restaurant that is operated by a restaurant owner who would not have been so fickle and flexible. This means that there will be a certain amount of competition and that consumers will be able to choose between different businesses and choose their meals based on the type of price that they can afford to pay.
However, in the case of macro economics, there are certain variables that do not affect the price of a product at all. For instance, when a country is on a currency peg to another country, the country with the peg will always be in an economic deficit. However, with a free market, where no government is involved in the economy, a country would still have to make a trade in order to keep its money in the same currency.
In addition to the price of products, it will also include the supply and demand, which are determined by the current demand for a particular commodity. When a person goes to a grocery store, they are looking for food that has the lowest prices available. However, when the demand for food that has a low price, is not met, that person will have to pay more for the food, forcing the grocery store to raise its prices in order to meet the demand.
Micro and Macro economics will show you how the price system is affected by the supply and demand that occur in a free market. If the supply of some types of food is higher than the demand for them, the price of that commodity will change. This, in turn, changes the price of other items that the consumer purchases.