Price effects

Price effects

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 4: Analysis of Consumer's Behavior

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of price effects.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Price effect
• Price-consumption curves for normal and Giffen goods

Detailed Microsyllabus

1. Price effect

   1. Change in consumer choice following an own-price change.
   2. Movement of the budget line with income unchanged.
   3. Graphical identification of new equilibrium combinations.

2. Price-consumption curve

   1. Trace equilibrium points as price changes.
   2. Price-consumption relationships for normal and Giffen goods.
   3. Distinguish the price effect from income changes.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.