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Microeconomics –I
Paper Code:
ECO 301
Credits:
3
Contact Hours:
45.00
Max. Marks:
100.00
Objective:
To acquaint the students with the methodology and approach of Microeconomics; and to understand the behaviour of an economic agent, namely a consumer and a producer in a comparative static and partial equilibrium framework.
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 ,Iso-cost 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:
