The document discusses microeconomics and macroeconomics. Microeconomics analyzes individual decision-making and resource allocation at the firm or industry level, while macroeconomics analyzes aggregate economic measures at the national level, such as GDP, unemployment, and inflation. The document also covers demand and supply theory, elasticity, and forecasting methods in economics.

2.  According to Mc Gutgan and Moyer
“Managerial economics is the application of
economic theory and methodology to
decision-making problems faced by both
public and private institutions”.

3.  Micro Economics
 Macro Economics
 Statistics
 Math's

4.  Microeconomics seeks to understand
how individuals and companies make
decisions about how to allocate scarce
resources
For example, microeconomics would look at
how a specific company could maximize it's
production and capacity so it could lower
prices and better compete in its industry.

5. Nature of Micro Economics
Allocation of
Individual Study Micro Analysis
Resoures

6.  Theory of demand and supply
 Theory of utility
 Theory of production & cost
 Theory of factor pricing

7.  Macroeconomics is used at the national level to
understand a country’s growth, inflation and
unemployment rates.
For example, macroeconomics would look at
how an increase/decrease in net exports would
affect a nation's capital account or how GDP
would be affected by unemployment rate.

8. Nature of Macro Economics
Macro Analysis Overall study of
Economics System

9. Scope of Macro Economics
Natio Employment Money
nal
Incom
e
Business
Cycle inflat
ion

10. Demand means that almost any kind of wish or
desire or need. But to an economist , demand
refers to both willingness and ability to pay.

11. Micro
Factors Macro Factors

12. Prices of
goods
Taste
Micro Prices of
related
Factors goods
Income

13. Climate/Wealth
Macro Taxes
factors
Money supply

14.  The degree to which demand for a good
or service varies with its price.
Normally, sales increase with drop in prices
and decrease with rise in prices.

16.  The price elasticity of demand measures the
responsiveness of quantity demanded to a
change in price, with all other factors held
constant.

19. Y
P1
P
Price
P2
O X
Q
Quantity

20. Y
P
Price
P1
O Q Q1 X
Quantity

21. Y
P
Price
P1
Q Q1 X
Quantity

22. Y
P
Price
P1
O Q Q1 X
Quantity

23.  Cross elasticity of demand measures the degree
of responsiveness of the quantity demanded of
one good (Good A) to change in the price of
another good (Good B).
 Negative Complementary goods
 Positive Substitute goods

25. Y
Price of
Goods Y P1
P
O D D1 X
Demand of Goods X

26. Y
Price of P1
Goods Y
P
O D1 D X
Demand of Goods X

27. Y
P1
Price of Goods Y P
P2
O D X
Demand of Goods X

29. Y
I1
I
O D D1 X

30. Y
I1
Price I
O D1 D X
Demand

31. Y
I2
I1
I
O D X

32. Forecasting is a tool used for predicting future
demand based on past demand information.

37. Consumer Collection Experts
Survey Opinion Opinion
Method Method Method

38. Complete
Enumeration Method
Sample Survey
Method
End Use Survey

41. Setting the
Objective
Selection of
Goods
Selection of
Method Interpreting the
Results