Microeconomics focuses on individual markets and behaviors

Steps:

• Recall microeconomics studies individual units like consumers and firms, while macroeconomics examines the economy as a whole.
• Evaluate each option: Check if it deals with aggregate economy (macro) or specific market behaviors (micro).
• Identify elasticity of demand as analyzing how quantity demanded responds to price changes in single markets.
• Confirm others relate to broad economic indicators, placing them in macroeconomics.

Why B is correct:

• Elasticity of demand measures responsiveness of quantity demanded to price changes, a core microeconomic tool for individual market analysis.

Why the others are wrong:

• A: Economic growth tracks overall GDP expansion, a macroeconomic aggregate.
• C: Inflation measures general price level rises across the economy, macroeconomic.
• D: Balance of payments records international transactions, a macroeconomic indicator.

Final answer: B