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Income effects

Unit 4: Analysis of Consumer's BehaviorTopic 4 of 6
Browse the Microeconomics for Business syllabus

Microeconomics for Business

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What the syllabus expects

  • Income effect
  • Income-consumption curves for normal and inferior goods

Income 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 income effects.
  • Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

  • Income effect
  • Income-consumption curves for normal and inferior goods

Detailed Microsyllabus

  1. Income effect

    1. Changes in purchasing choices as money income changes.
    2. Parallel shifts of the budget line with prices unchanged.
    3. Normal and inferior goods.

  2. Income-consumption curve

    1. Trace equilibrium combinations as income changes.
    2. Interpret the direction of the income response.
    3. Connect the income effect to consumer demand behavior.

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.