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Unit 1: Methodological Concepts

Unit 2: Consumer Behaviour

  • Preference ordering; the consumption decision; consumer’s equilibrium;
  • changes in prices and derivation of compensated and uncompensated demand curves;
  • comparative statics of consumer behavior; types of goods;
  • the concept of duality in consumer theory; the expenditure function; the indirect utility function; estimating cost of living;
  • Lancasterian demand theory and liner expenditure system;
  • Revealed preference theory

Unit 3: Behaviour under uncertainty

Unit 4: Technology

  • Measurement of inputs and outputs; Production function for a single product;
  • Decision period related to production analysis; Elasticity of substitution; production with one and two variable inputs;
  • producer’s equilibrium: Optimal choice of inputs; constrained output maximization, constrained cost minimization, profit maximization,
  • Effects of changes in outlay on equilibrium position;
  • Homogeneous and Homothetic technologies;
  • The technical rate of substitution returns to scale; calculation of these values in some standard production functions such as Cobb-Douglas, Leontief production function, and Constant Elasticity of Substitution (CES); derivation of cost function from the production function

Unit 5: Market

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