Micro economics

Course outline
Course instructor: Sadia Ather class:BBA. 1. D

Microeconomics

Microeconomics is a branch of economics that studies how

households and firms make decisions to allocate limited
resources typically in markets where goods or services are
being bought and sold. Microeconomics examines how
these decisions and behaviors affect the supply and
demand for goods and services, which determines prices;
and how prices, in turn, determine the supply and demand of
goods and services.

Week course
1 • What is Economics
• What is Micro economics
• What Demand Is
• Demand curve
• The Law of Demand
• Demand function
• Price elasticity of demand
• Determinants of elasticity of demand
• Cross elasticity of demand
• Income elasticity of demand
Shifting of the Demand Curve
2
• Supply
• The Law of Supply
• Elasticity of supply
• Changes in Supply

1. Quiz#1
2 .Assignment#1
3 • Market Equilibrium

• Effect of changes in demand and supply on the

Equilibrium price and quantity

Effect of taxes on Equilibrium price and quantity

4 Consumer preferences and consumer demand

• Indifference curve
• Perfect Substitutes and Perfect Complements
• Marginal Rate of Substitution
• Budget line
1. Quiz#2
2. Assignment #2

5 • Consumer equilibrium
• Income consumption and price consumption curves
• Deriving demand curve from price consumption curve

6 Production and factors of production

Scale of production and laws of returns

1.Quiz #3
 Assignment #3

7 • Firms product ,total marginal and average product

• Costs of production
• Short run cost curves
• Long run cost curves

8 • Isoquants
• Marginal Rate of Substitution
• Perfect Complements
• Isocost Curves
• Optimum factor combination

• Profit Maximisation and Cost Minimisation

9 Midterm
10 Perfect competition

Firm equilibrium with the help of total revenue total cost

method

Marginal revenue marginal cost method

Short run equilibrium conditions of a perfect competitive

firm

Long run equilibrium

Quiz#4

Assignment#4
11 Short supply curve of firm and industry

Long run supply curve of firm and industry

Monopoly

12 Price discrimination

• Projects assigned

13 Monopolistic competition
Short run and long run equilibrium

14 • Oligopoly
• Kinked demand curve
1. Project submission
15 • Cartel

16 final presentation
Recommended book
Micro economics by N.Gregory Mankiw
5th edition

Reference book
Managerial Economics by Michael R., Bay 5th
edition