Unit II: Theory of Consumer Demand | BCA 6th Semester Applied Economics Notes Pdf

Demand theory is an economic principle relating to the relationship between consumer demand for goods and services and their prices in the market.

Demand theory forms the basis for the demand curve, which relates consumer desire to the amount of goods available. As more of a good or service is available, demand drops and so does the equilibrium price.

In this “Theory of Consumer Demand - Applied Economics” you will learn about following topics:

1. Ordinal Approach (Indifference Curve Analysis)
2. Meaning of Indifference Curve
3. Properties of Indifference Curve
4. Consumers Equilibrium
5. Changes in Consumer’s Equilibrium
6. Price Effect
7. Income Effect
8. Substitution Effect
9. Decomposition of Price Effect into Income and Substitution Effect
10. Decomposition Of The Price Effect Into Income And Substitution Effects With A Fall In The Price Of Normal Goods Under Hicksian Approach
11. Demand and Demand Function
12. Price Elasticity of Demand (Ep)
13. Types (Degree) of Price Elasticity of Demand
14. Determinants of Price Elasticity of Demand
15. Income Elasticity of Demand (Ey)
16. Types of Income Elasticity of Demand
17. Cross Elasticity of Demand (E_C)
18. Types Of Cross Elasticity of Demand
19. Supply and Supply Function
20. Price Elasticity of Supply
21. Degrees or Types of Price Elasticity of Supply
22. Economics of Speculation

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BCA 6th Semester Applied Economics Notes Pdf:

• Unit I: Introduction Of Economics
• Unit III: Analysis Of Cost And Revenue
• Unit IV: Theory Of Production
• Unit V: Product Pricing
• Unit VI: Factor Pricing
• Unit VII: National Income
• Unit VIII: Theory Of Employment
• Unit IX: Consumption Saving And Investment Functions
• Unit X: Business Cycle
• Unit XI: The Mechanism Of Foreign Exchange
• Unit XII: Macro Stabilizing Policies
• Unit XIII: Economics of Development