Description
Micro Economic Theory 7th Edition M.l.jhingan
Microeconomic Theory is defined as the study of individual economic decisions regarding demand and supply, focusing on maximizing utility within constraints through calculus methods.
This popular textbook in India and abroad covers the topics of consumption theory, production theory, product pricing, factor pricing, welfare economics and basic concepts of microeconomics.
The seventh edition has been thoroughly revised and susbtantially enlarged in keeping with changes in the lastest UGC syllabi of Pass and Hons.Classes abd of various Professional courses.
Microeconomics is based on models of consumers or firms (which economists call agents) that make decisions about what to buy, sell, or produce—with the assumption that those decisions result in perfect market clearing (demand equals supply) and other ideal conditions.
Microeconomic theory states that supply and demand get balanced by market forces at a specific price. If the demand goes up, the price also goes up. This has the effect of restraining the growth in demand. As a result, demand and supply reach a new balance at a higher price (see Fig. 2.1). D1 and S1 represent the base demand and supply which are at equilibrium at price P1. If the demand goes up to D2, the supply will go up to S2 and equilibrium will be reached at price P2. The converse happens if the demand comes down.
