UNIT I Introduction- Basic Economic Problem-Choice and Scarcity; Deductive and Inductive methods, Positive and Normative Economics, Economic models. UNIT-11 Consumer Behaviour: Properties of indifference curve; Price and Income Substitution Effects, Hicks and Slutsky Approach and Applications, Derivation of demand curves and income-Consumption curves from indifference curves, Applications of Elasticity of demand, Relation between elasticity, Marginal revenue, Average revenue and total revenue, Revealed Preference Theory. UNIT IIl Theory of Production and Cost – Theory of Production and Cost-Production function-short period and long period; law of variable proportions and returns to scale; Isoquants-Least cost combination of inputs; Expansion Path, Concepts of product line-Isocline and ridge line, Multiproduct firm; Elasticity of substitution; Cobb-Douglas and CES Production Functions, Theories of costs; Derivation of cost functions from production functions; derived demand for factors. UNIT IV Market Structure (a): Price and output determination under Perfect Competition-Short Run & Long Run Equilibrium, Monopoly- Short Run & Long Run Equilibrium, price discrimination, Monopolistic Competition UNIT V Market Structure (b) : Price and output determination under Oligopoly – Non-collusive (Cournot, Bertrand, Edgeworth, Chamberlin, kinked demand curve and Stackelberg’s solution) and collusive (Cartels and mergers, price leadership and basing point price system) models; Productive and allocative efficiency in the markets.