Economics plays a crucial role in our daily lives, shaping every decision—from the products we buy to how businesses function within markets. With this understanding, this book serves as a comprehensive guide designed to simplify the complexities of economic principles and their application in the real world.

This book provides commerce and economics students with a strong foundation in economic theory, equipping them with the tools needed to analyse and understand the intricate workings of markets and economic systems. The content is designed to enhance both teaching and learning experiences. It begins with an introduction to the basic concepts of demand and supply, then progressively discusses the more complex topics such as market dynamics, price elasticity, government intervention, and firm behaviour. This structured approach ensures students grasp the fundamentals and build on this knowledge to tackle more advanced economic theories.

A standout feature of this book is its integration of practical examples, case studies, tables, diagrams, and graphical representations. These elements are strategically woven throughout the text to reinforce students’ understanding of economic phenomena. Additionally, including numerical problems and self-check questions encourages active engagement, ensuring students can apply the concepts to real-world scenarios.

The book’s focus on mathematical models and graphical analysis provides a rigorous framework for studying economics, enabling students to visualise and comprehend key concepts such as market equilibrium, elasticity, and cost structures. Each chapter concludes with review questions and problems designed to test comprehension and promote self-assessment, making it an invaluable resource for mastering business economics.

The Present Publication is the Latest Edition, authored by Prof. (Dr) Abha Mittal and Dr Meghna Aggarwal, with the following noteworthy features:

• [Updated Content] The book is carefully aligned with the latest syllabus, ensuring that students engage with the most up-to-date and relevant economic principles
• [Clear and Accessible Writing] The writing is clear and concise, making complex economic concepts easy to understand for students at all levels
• [Comprehensive Analysis] The book thoroughly covers economic principles, from basic concepts to advanced theories, making it suitable for both beginners and advanced learners
• [Real-World Application] Practical examples and case studies illustrate how economic principles are applied in real-world situations
• [Analytical Depth] The inclusion of mathematical models and equations provides a rigorous approach to understanding economic phenomena, appealing to students who appreciate a more analytical perspective
• [Visual Learning] Detailed graphical analyses accompany theoretical discussions, enabling students to visualise and better grasp critical concepts such as supply and demand, market equilibrium, and elasticity
• [Engagement and Reinforcement] Each chapter includes problem sets, exercises, and review questions designed to reinforce understanding and support the practical application of the material

The structure of the book is as follows:

• Chapter 1 – Introduces the fundamental concepts of Business Economics, covering the nature, scope, and significance of economics in addressing business challenges
• Chapters 2-5 – Provides a detailed analysis of demand and supply principles, explaining how these forces shape market behaviour, pricing, and resource allocation
• Chapters 6-7 – Focus on the elasticity of demand and supply, providing critical analysis into how price changes affect consumer behaviour and market dynamics
• Chapter 8 – Investigates individual decision-making processes, emphasising how consumers maximise satisfaction within their budgetary constraints
• Chapters 9-17 – Discusses consumer preferences, trade-offs, and utility optimisation, equipping students with tools to analyse choices and optimise utility
• Chapter 18 – Discusses strategies for businesses to optimise resource allocation and output in the short run to maximise profits
• Chapter 19 – Examines isoquants and the optimal combination of inputs to achieve production efficiency
• Chapter 20 – Focuses on long-term production decisions, analysing how firms can optimise resource allocation and production scale over time
• Chapter 21 – Analyses the effects of production scale on costs, efficiency, and market competitiveness
• Chapter 22 – Investigates the long-run law of production, returns to scale, and the factors that drive production efficiency
• Chapters 23-24 – Explore cost analysis, guiding students in evaluating the financial impacts of business decisions and optimising resource use
• Chapters 25-33 – Cover various market structures, including perfect competition, monopoly, monopolistic competition, and oligopoly, discussing how these structures affect pricing, competition, and consumer choices
• Chapter 34 – Addresses contemporary economic issues and applications, such as labour supply, game theory, peak load pricing, and rent control, providing a comprehensive understanding of modern market dynamics.