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The Intermediate Micro Economics – I (ECON – 007) Course for BA (Hons) Economics Semester III, UGCF 2023, Delhi University has been taught by Mr. Dheeraj Suri. The Video Lectures are based upon the books prescribed by the University of Delhi. The Duration of Video Lectures is approximately 50 Hours.

Course Fee : Rs. 7,000

Access of Video Lectures is provided on any one of the following devices:

Windows Computer or Laptop, or

Android Phone or Tablet, or

Apple Macbook,

till end of Semester III Exams.

You will Get

• Full Course Video Lectures
• Complete Study Material (PDF Notes) which includes Concepts, Previous Year Questions, Numerical Questions, MCQ’s and Important Questions
• Online Discussion Forum to Post Your Queries to Discuss with Faculty & other fellow Students
• Live online Doubts Sessions (at least twice a week) for resolution of Doubts
• Mock Tests at the Website
• Video Lectures Cover Theory Portions Exchaustively + Complete Solutions of Back Questions of readings + Solutions of Previous Years Papers + Large Number of Numericals

## Demo PDF of Study Material

Chapter-3-Utility

## Demo Quiz

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Consumer Equilibrium Test #1 3. The Paper has twenty Questions
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1 / 11

In a two good world there is an individual with income m = 3 and utility function is given by u = = x0.5y0.5 . The price of good x is Re. 1 per unit and the price of good y is also Re. 1 per unit.

If the individual can consume any non negative amount of good x and y, then the optimum consumption bundle is

2 / 11

In a two good world there is an individual with income m = 3 and utility function is given by u = x0.5y0.5. The price of good x is Re. 1 per unit and the price of good y is also Re. 1 per unit.

If the individual can consume either zero unit of good x or at most one unit of x and any non-negative amount of good y, then the optimum consumption bundle is

3 / 11

In a two good world there is an individual with income m = 3 and utility function is given by u = x0.5y0.5. The price of good x is Re. 1 per unit and the price of good y is also Re. 1 per unit.

If both goods x and y can be consumed in integer amounts (i.e., zero unit, one unit, two units etc.) then the optimum consumption bundle is

4 / 11

Suppose a consumers preferences over commodities 1 and 2 can be represented by the utility function U(x1, x2 ) = min⁡{ x1, x2 } + max{ x1, x2 }, where  x1, x2  ≥0. The prices of the two commodities are 1 and 2 respectively and the consumers income is 150. Which of the following is true?

5 / 11

There are three commodities - the first commodity has a negative price -1 per unit, the second commodity is priced at +1 per unit and third is priced at +2 per unit. Income of the person is 100 per day. Then which one of the following is not true?

6 / 11

Satish is very conscious about the food he eats. He only eats rotis and dal; a cup of dal costs Rs. 2 while each roti costs Re. 1 and Satish decides to spend Rs. 13 per day on food. Also he decides to consume exactly 5500 calories a day; he has been told that each roti has 1000 calories while each cup of dal has 500 calories. He spends his entire money allotted on foods. Then

7 / 11

Let the following utility function represent the preference relation of an individual

U(x, y) = x0.5 + y
Let Px, Py and M denote the prices of good x, y and money income respectively. Px, Py, M > 0

Optimal consumption bundle of the consumer includes

8 / 11

Let the following utility function represent the preference relation of an individual

U(x, y) = x0.5 + y
Let Px, Py and M denote the prices of good x, y and money income respectively. Px, Py, M > 0

Given prices, as M increases optimal consumption of x

9 / 11

Let the following utility function represent the preference relation of an individual

U(x, y) = x0.5 + y
Let Px, Py and M denote the prices of good x, y and money income respectively. Px, Py, M > 0

Let Py = 2, Px = 1/4m, optimal consumption bundle includes

10 / 11

Let the following utility function represent the preference relation of an individual

U(x, y) = x0.5 + y
Let Px, Py and M denote the prices of good x, y and money income respectively. Px, Py, M > 0

If Px = Py in the optimal consumption bundle

11 / 11

Consider the function U defined on R2 , where U(x, y) = √(3x + y). which of the following statements is true?

The average score is 27%

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## Chapter 1 : Budget Constraint [218 Minutes]

### Based Upon Hal Varian Chapter 2

Number of Lectures   7 Lectures

Total Duration of Lectures  218 Minutes

Number of Questions in Notes   40 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 2 : Preference [213 Minutes]

### Based Upon Hal Varian Chapter 3

Number of Lectures   7 Lectures

Total Duration of Lectures  213 Minutes

Number of Questions in Notes   61 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 3 : Utility [150 Minutes]

### Based Upon Hal Varian Chapter 4

Number of Lectures   4 Lectures

Total Duration of Lectures  150 Minutes

Number of Questions in Notes   36 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 4 : Choice [319 Minutes]

### Based Upon Hal Varian Chapter 5

Number of Lectures   9 Lectures

Total Duration of Lectures  319 Minutes

Number of Questions in Notes   81 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 5 : Demand [268 Minutes]

### Based Upon Hal Varian Chapter 6

Number of Lectures   4 Lectures

Total Duration of Lectures  268 Minutes

Number of Questions in Notes   53 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 6 : Revealed Preference [171 Minutes]

### Based Upon Hal Varian Chapter 7

Number of Lectures   4 Lectures

Total Duration of Lectures  171 Minutes

Number of Questions in Notes   28 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 7 : Slutsky Equation [344 Minutes]

### Based Upon Hal Varian Chapter 8

Number of Lectures   9 Lectures

Total Duration of Lectures  344 Minutes

Number of Questions in Notes   55 Questions

Number of MCQ Tests on this Chapter   4 Tests

## Chapter 8 : Buying & Selling [441 Minutes]

### Based Upon Hal Varian Chapter 9

Number of Lectures   8 Lectures

Total Duration of Lectures  441 Minutes

Number of Questions in Notes   33 Questions

Number of MCQ Tests on this Chapter   4 Tests

## Chapter 9 : Inter Temporal Choice [370 Minutes]

### Based Upon Hal Varian Chapter 10

Number of Lectures   8 Lectures

Total Duration of Lectures  370 Minutes

Number of Questions in Notes   41 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 10 : Risk & Uncertainty [536 Minutes]

### Based Upon Bernheim & Whinston Chapter 11

Number of Lectures   11 Lectures

Total Duration of Lectures  536 Minutes

Number of Questions in Notes   36 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 10 : Risk & Uncertainty [536 Minutes]

### Based Upon Bernheim & Whinston Chapter 11

Number of Lectures   11 Lectures

Total Duration of Lectures  536 Minutes

Number of Questions in Notes   36 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 11 : Production Functions [452 Minutes]

### Based Upon Nicholson & Snyder Chapter 9

Number of Lectures   14 Lectures

Total Duration of Lectures   452 Minutes

Number of Questions in Notes   56 Questions

Number of MCQ Tests on this Chapter   4 Tests

## Chapter 12 : Cost Functions [453 Minutes]

### Based Upon Nicholson & Snyder Chapter 10

Number of Lectures   9 Lectures

Total Duration of Lectures  453 Minutes

Number of Questions in Notes   41 Questions

Number of MCQ Tests on this Chapter   2 Tests

## Chapter 13 : Profit [288 Minutes]

### Based Upon Nicholson & Snyder Chapter 11

Number of Lectures   6 Lectures

Total Duration of Lectures   288 Minutes

Number of Questions in Notes   21 Questions

Number of MCQ Tests on this Chapter   4 Tests

## Course Description

### Learning Objectives

The Learning Objectives of this course are as follows:

• The course is designed to formally analyze the behaviour of individual agents like consumers and
producers under certain conditions.
• Mathematical tools are used to facilitate understanding of the basic concepts.
• This course looks at the behaviour of the consumer and the choices of a competitive firm.

### Learning outcomes

The Learning outcomes of this course are as follows:

• Students will learn the basic elements of consumption and production theories using various
technical frameworks.
• This course provides them the behavioural foundations of market supply and demand.

### Syllabus

UNIT I: Consumer behaviour (15 hours)
Preference and utility, Budget and choice, Income and substitution effect, Demand derivation, Labour
supply, One-person welfare
UNIT II: Decision-making under uncertainty (15 hours)
Expected utility, Risk aversion, Insurance, Risk spreading
UNIT III: Producer behaviour and markets (15 hours)
Technology, Profit maximization, Cost minimization, Supply, Short and long run