Microeconomics –I

Paper Code: 
ECO 301
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objectives of this course are-

  1. To introduce the students to the basic microeconomic concepts.
  2. To make the students understand the consumers’ behaviour.
  3. To make the students learn about the producer’s behaviour. 

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

  ECO     301

Microeconomics-I

CO 17: Comprehend consumer’s equilibrium through cardinal and ordinal utility approaches.

CO 18: Identify the price, income and substitution effects in context of law of demand.

CO 19: Analyze the short run and long run production functions and producer’s equilibrium.

Approach in teaching: Interactive Lectures, Discussion,  Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and  Semester end examinations.

 

 

9.00
Unit I: 
Cardinal Utility Analysis
  • Utility : Meaning & measurability
  • Total and Marginal utility;
  • Law of diminishing marginal utility;
  • Consumer’s equilibrium – law of equi-marginal utility.
  • Consumer’s surplus – Marshallian Concept.

 

9.00
Unit II: 
Ordinal Utility Analysis
  • Indifference curves : Characteristics, MRS
  • Budget line : Slope & shift
  • Consumer’s equilibrium.

 

9.00
Unit III: 
Topics on Consumer Behaviour
  • Income consumption curve, Price consumption curve
  • Price, substitution and income effect: Normal, Inferior and Giffen Goods (Hicksian Approach);
  • Engel’s Curve : Derivation of Engel’s curve & demand curve from IC analysis
  • Elasticity of demand: Price, Income and Cross – meaning & measurement;

 

9.00
Unit IV: 
Theory of Production I
  • Short Run production Function
  • Total, average and marginal product curves; interrelationships
  • Law of returns to variable factor
  • Stages of Production and Rational production decision

 

9.00
Unit V: 
Theory of Production II
  • Long Run production Function
  • Isoquants, Isocost lines and Producer’s equilibrium;
  • Expansion Path and Ridge Lines;
  • Law of Returns to scale

 

Essential Readings: 
  1. Ahuja, H.L. Modern Microeconomics: Theory & Applications , S. Chand & Company, New Delhi.

 

References: 
  1. Gould, J.P. and C.F., Ferguson, Microeconomic Theory, All India Traveler Book Sellers, Delhi.
  1. Koutsoyiannis, A. , Modern Microeconomics, Macmillan.
  1. Varian, H.R. , Intermediate Microeconomics: A Modern Approach, East-west Press, New Delhi.
  2. Stonier, A.W. and D.C. Hague, A Textbook of Economics Theory, ELBS and Longman Group, London.

 

Academic Session: 
2020-21
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