Business Economics


Dr. Anjali Dash


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Code : CUBC2430(4-1-1)

Course Objectives

To expand the students' knowledge in the field of microeconomics and to make them ready to analyze real economic situations and to understand the concept of Macro Economics and its usefulness in the current economic scenario, for a student to comprehend its application in the real-world scenario.

Course Outcomes

CO1 Ability to acquire the conceptual and theoretical knowledge of microeconomics and macroeconomics which is relevant for evaluating economic behavior of an individual and national income. Understand interdependency circular flow of income.  Understand the past, present economic conditions of the country. PO1(3)
CO2 Demonstrate the use of microeconomic and macroeconomics concepts like utility satisfying and maximizing traits of consumers, demand forecasting for price fixing and opportunity cost in strategic planning at micro level and saving, investment , GDP at macro level; Analyse the causes and effects of changes in real GDP; Forecast the future course of changes and development through their knowledge of policies and programs set by the governments and other development agencies; Develop an economic perspective of business problems being a leader in future in digital economy.




PO2(3) PO5(2) PO9(3)
CO3 Evaluate and compare the various types of market structures and use them when planning price policy of firm and industry and communicate ideas with the policy maker PO3(3) PO4(2)
CO6 Understand and appreciate the production dynamics – including cost, revenue and profit considerations and according frame policy to remove disequilibrium in market structure. Identify the process of how the nation’s output of goods and services is measured through the national income PO6(3) PO7(2)
CO7 Learn the optimization functions for both consumer and producer equilibrium; Ability to understand about how to make sustainable economic growth of a nation. PO8(3) PO10(3)

Course Syllabus

Module I: Basic Concepts

Meaning, Nature and Scope of Business Economics, Basic Problems of an Economy and Application of Economic Theories in Decision Making, Steps in Decision Making


Module II: Consumer Behaviour and Elasticity of Demand

Theory of Demand and supply The elasticity of demand – Concept, kinds- price, cross, income and advertising elasticity of demand, Measurement of elasticity of demand, factors influencing the elasticity of demand, Importance of elasticity of demand. Demand forecasting: Meaning, Need, Importance, Methods of demand forecasting. Cardinal Utility Analysis: Diminishing Marginal utility and Equi-marginal Utility Ordinal utility analysis of consumer Behaviour: budget line and indifference curve, consumer equilibrium. Income consumption curve and Engle curve, Price Consumption curve and derivation of demand curve, Income and Substitution; Effect of a price change; Consumer Surplus; Revealed Preference theory

Module III: Production and cost

Production Function – Concept Definition, Types of products, Law of variable proportions, Assumptions,LimitationsandSignificance.Isoquantcurves,Definition,Generalpropertiesofisoquantcurves,marginalrateoftechnical substitution, economic region of production, Isocost lines, optimal combination of resources, the expansion path, returns to scale.

Cost of production: Concept of explicit costs, implicit costs and opportunity costs of production, derivation of short run and long run cost curves. Economies and Diseconomies of scale and the shape to the long run average cost.


Module IV: Pricing & Market

Theory of pricing – cost plus pricing, target pricing, marginal cost pricing, going rate pricing; Objective of business firm, Concept of Market, classification of market-perfect competition, monopoly, monopolistic competition and oligopoly. Price determination and equilibrium of firm in different market situations; Factor pricing.



Module V: Macro Aspect of Business Economics

National Income and it’s measurement, Gross National Product, Net National Product, Net National Income. Business Cycle phases and causes; Inflation and Deflation causes and remedial action; Consumption, Income, Savings and investment.

Books Recommended:

  1. Pindyke and Rubinfeld, Micro Economics
  2. Gould & Ferguson, Micro Economic Theory
  3. Banerjee & Majumdar, Fundamentals of Business Economics
  4. Joydeb Sarkhel, Macro Economic Theory

Session Plan

Session 1

Session 2

Economics — scope and subject matter

Resources-scarcity and efficiency

Production Possibility Frontier

Introduction to Business Economics pdf

Session 3

Tools required in Economics

Session 4

Basics of Demand and Supply

Determinants of demand

The concept Supply and its determinants


Session 5

Determination of equilibrium price

Market equilibrium and demand supply analysis

Session 6

Concept of Elasticity of demand –Measurement 0f various elasticity of demand

Elasticity of Demand

Session 7

Theory of Consumer Behaviour:

Cardinal analysis – Law of diminishing marginal utility

consumer surplus Ordinal approach

Consumer Behaviour

Session 8

Indifference curve analysis:

Meaning and concept of Indifference curve

Properties of IC

Session 9

Theory of Production

Production Function – The Law of variable proportions

Session 10

Long Run Production Function

Concept of Isoquant and Iso cost

Finding the optimal employment of inputs.

Ridge Line-the economic region of production

Session 11

Market for Commodities

Revenue concepts under different market conditions

Perfect competition

Session 12

Monopoly – Short run and long run equilibrium

Session 13

Session 14

Cost analysis – Different concepts

Short run and long run costs

economies and diseconomies of scale

Session 15

Factor Price Determination

Theory of Wage Determination

Determination of Rent

Determination of profit and interest

Session 16


Scope and basic concepts

Circular flow of income

National income determination
Measurement of GDP, GNP, NNP, NI and DPI

national income measurement

Session 17

Money and Inflation

Quantity theory of money and Keynesian theory of demand for money.

Monetary and fiscal policies to control inflation – Instruments

money supply and inflation

Session 19

Practice Class 1 :  Price elasticity of Demand

Problems discussed and solved

Session 20

Practice Class 2 : Income Elasticity and Cross elasticity of Demand

Problems discussed and solved

Session 21

Practice Class 3 :  Cost minimization and Profit Maximization

Problems discussed and solved

Session 22

Practice Class 4:  Market equilibrium taking demand and supply

Problems discussed and solved

Session 23

Practice Class 5:  Price and output determination under perfect competition

Problems discussed and solved

Session 24

Practice Class 6 :  Price and output determination under Monopoly

Problems discussed and solved

Session 25

Practice Class 7 :   Price and output determination under Oligopoly and Monopolistic Market

Problems discussed and solved

Session 26

Revision of all Units and Doubt Clearing

Session 27

Practice Class 8 :  Finding out the output level where different stages of Law of Variable Proportion operates.

Problems discussed and solved

Session 28

Different project Topics will be given to students. Students need to prepare their project report on the given topic and submit it to the department. Students also need give presentation on the project topic.

Case Studies

Our Main Teachers

Dr. Anjali Dash

Assistant Professor

Dr. Anjali Dash is working as an Assistant Professor (Economics) at School of Management, Centurian University of Technology and Management, Bhubaneswar since August 2022. She was a Post-doctoral fellow at International Institute for Population Sciences (IIPS), Mumbai, 2017-2019. She hold Ph.D. degree in Economics from M.P. Institute of Social Science Research, Ujjain, M.P. and Mphil degree in Economics from Sambalpur University. Her interest is on teaching are: Health economics, Economietrics, Microeconomics, Mathematical economics, and Computer application for economic analysis, Statistics. Her research interest is on health economics, poverty, rural and tribal development, urban issues, education, ageing, migration, and employment. She is interested more in interdisciplinary research. She has more than 8 years of post PhD worked experience in research and teaching from various national organization such as Central University of Odisha, Koraput, Centre for Social Studies, Surat, Institute of Economic Growth (IEG), New Delhi, Samarthan Bhopal, Tata Institute of Social Sciences (TISS), Mumbai and Sambalpur University. She has proficient in analytical skill in large data like NSSO, NFHS and SAGE.

Sanjukta Mohanty is working as HOD – B.COM (B&A) at Centurion University of Technology and Management, Bhubaneswar. Sanjukta Mohanty is continuing her Ph.D in Management under Utkal University. She has completed her MBA in Finance from Biju Pattnaik University of Technology & Management. She is also having MA in Economics from Ravenshaw University. She has […]