The best answer for Why is microeconomics also known as price theory ?
It is known as price theory because it examines how the prices of various products are determined. The product pricing explains how the relative prices of house, car ,rice, sugar & thousands of other commodities are determined. Price of the commodity depends upon the forces of demand & supply. Demand side covers the consumer behavior & supply side covers the producers behavior. Microeconomics also deals with the factor pricing that is rent, wages, interest & profits for the LAND, LABOR, CAPITAL & ENTERPRISE.