Microenomics studies individual markets by simplifying the economic system by assuming that activity in the market being analysed does no affect other markets this method of analysis is known as partial-equilibrium analysis (supply and demand)this method aggregates (the sum of all activity)in only one market. General-equilibrium theory studies various markets and their behaviour.it aggregates (the sum of all activity)across all markets.this method studies both changes in markets and their interactions leading towards equilibrium