Course

OPEN ELECTIVES-UG (Arts , Humanities and Commerce)

Unit 1

Introduction to Micro Economics – origin – meaning – positive and normative economics – basic economic problems – capitalist economy – socialist economy and mixed economy.

Unit 2

Demand and Supply Analysis – Demand Determinants – individual and market demand – individual and market schedules – changes and shifts in demand – Market demand – Elasticity – types and degrees of price elasticity – determinants – Income elasticity of demand.

Unit 3

Supply – supply schedule and supply curve – changes and shifts in supply – elasticity of supply – Revenues – total, average and marginal – market equilibrium and impact of changes in demand and supply

Unit 4

Theory of Consumer Behaviour – Consumer preference and choice – utility – total and marginal utility – cardinal and ordinal utility. Analysis of consumer behaviour – law of diminishing marginal

utility – law of equi-marginal utility – consumer equilibrium under cardinal utility. Ordinal utility analysis – indifference curve analysis – properties.

Unit 5

Production – production function – total, marginal and average product – short run analysis of production function and long run analysis of production function – returns to a factor – law of variable proportions – three stages. Isoquants – properties – Iso cost line – returns to scale – economies and diseconomies of scale – internal and external economies.

Course Objective:

To analyse the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses, various microeconomic concepts, demand and supply, utility analysis, and production function.

Course Outcomes:

The students will be able to:

CO1: To identify the various features and problems of capitalist, socialist and mixed economies

CO2: To analyse the basic economic problems and its application in the society.

CO3: To discuss the economic data using changes in supply and its implications in the market equilibrium condition.

CO4: To familiarize the concepts of consumer behaviour, utility and indifference curve analysis.

CO5: To analyze short run and long run production function and to predict least cost production combination in the economy.

Textbooks

1. Koutsoyiannis – Modern Micro Economics – Palgrave McMillan
2. Dominick Salvatore – Micro Economics: Theory and Application – Oxford University Press

References:

1. Robert Pindyck, et al. – Micro Economics – Pearson Education
2. S. Maddala and Ellen Miller – Micro Economics: Theory and Applications – McGraw Hill