Consumer preferences and Microeconomics. As we all know, Microeconomics studies the decisions made by individuals and firms to allocate resources of production, exchange, and consumption and in addition to this Microeconomics helps us to formulate mathematical models based on samples of behavior of the consumers or firms and test the models against real-world observations. Now, after reading all this, a few among you might be wondering what is the relationship between consumer preferences and Microeconomics. Well, lets find out together. To begin with, we will try and answer two basic questions Who are consumers and w hat is meant by consumer preferences ? To begin with, Consumers are people who buy certain goods for their personal consumption and not for any other commercial purpose, and consumer preferences are nothing but the choices made by consumers while purchasing a good or a service, and these decisions or choices are majorly dependent on the satisfactio