Microeconomics has much theoretical and practical importance. A Due to this even the neo-classical economists had concentrated on micro-economics. Although Keynes popularized macroeconomics, the importance of microeconomics has not declined. The importance of microeconomics can be analyzed on the basis of the following headings:

1. Understand the working of the economy
2. Efficient allocation of resources
3. Useful in business decision-making
4.  Study of human behavior
5. Examine conditions of economic welfare
6. Formulation of public policies
7.  Solution of contemporary micro-economic problems