Prerequisite: AEA 104
Content
The nature and problems of economic theory. The theory of consumer behaviour and demand. The theory of supply. Elasticity of demand and supply. Empirical demand and supply measurement and tests. The theory of production: laws of production, technical progress, and equilibrium of the firm. Theory of costs: short run and long run cost curves, economies of scale. Pricing under different market conditions: perfect competition, oligopolistic competition, and monopoly and price discrimination. Theory of distribution. Welfare economics