Microeconomics –I

Paper Code: 
ECO 301
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To introduce the basic concepts of microeconomics.
  2. To help analyze consumers’ behavior and  producer’sbehavior.
  3. To examine the theory of production both in the short run and in the long run

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

  ECO     301

Microeconomics-I

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

CO 18: Students will identify the price, income and substitution effects in context of consumerbehavior.

CO 19: Students will 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: 
  • Ahuja, H.L. Modern Microeconomics: Theory &Applications , S. Chand & Company, New Delhi.

 

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

 

Academic Session: 
2021-22
  • Printer-friendly version
  • PDF version