LPU - Lovely Professional University
What you'll learn

Course Description: This course provides a practical understanding of Business Economics and its role in business decision-making. Learners will explore key concepts such as demand and supply, elasticity, production and cost analysis, market structures, pricing strategies, national income, inflation, consumption, and investment. The course emphasizes real-world applications to help students analyze economic conditions and make informed managerial decisions. Learning Outcomes: Explain the fundamental concepts and principles of Business Economics. Analyze demand, supply, and elasticity to support business decision-making. Apply cost, production, and pricing concepts in real business situations. Differentiate between various market structures and their business implications. Evaluate macroeconomic indicators such as national income and inflation. Develop analytical and critical thinking skills for solving business and economic problems.

  • Introduction to the meaning, nature, scope, and importance of Business Economics and its role in managerial and business decision-making
  • Study of the law of demand, demand schedule and curve, and factors influencing consumer demand in the market
  • Understanding the law of supply, supply function, and various determinants affecting market supply
  • Explanation of equilibrium price and quantity determination through interaction of demand and supply forces.
  • Analysis of extension, contraction, increase, and decrease in demand and supply curves due to market changes.
  • Overview of elasticity, its meaning, importance, and responsiveness of demand to market changes
  • Study of responsiveness of demand to price changes, methods of measurement, and practical applications.
  • Understanding consumer demand changes due to income variation and price changes of related goods
  • Examination of factors influencing elasticity such as availability of substitutes, necessity, income level, and time period.
  • Application of elasticity concepts in pricing, production, taxation, and marketing decisions
  • Introduction to fixed, variable, total, average, and marginal costs along with production inputs
  • Comparative analysis of cost behavior in short-run and long-run production periods.
  • Understanding break-even point, contribution analysis, and its significance in profit planning.
  • Study of production relationships with one variable input and the law of variable proportions
  • Features, price determination, and equilibrium under perfectly competitive markets
  • Characteristics, pricing, output decisions, and market power under monopoly markets
  • Study of product differentiation, selling costs, and competition among firms.
  • Analysis of interdependent firms, pricing behavior, and competition in oligopolistic markets
  • Evaluation of pricing methods and strategies adopted under various market conditions
  • Introduction to GDP, GNP, NNP, personal income, and related national income concepts.
  • Methods of measuring national income including production, income, and expenditure approaches.
  • Discussion on practical and conceptual challenges in national income estimation
  • Understanding the circular flow of income in two-sector, three-sector, and open economy models
  • Study of consumption behavior and factors influencing consumption expenditure
  • Analysis of investment concepts, classifications, and determinants influencing investment decisions.
  • Understanding inflation, price indices, types, causes, and measurement techniques.
  • Measures to control inflation through monetary and fiscal policies and inflation targeting frameworks.

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Dr.Blessy Sarah Mathew
Assistant Professor

Dr. Blessy Sarah Mathew is an academician and researcher currently serving as an assistant professor at Lovely Professional University, Punjab. She holds a Ph.D. in Economics from the Central University of Karnataka and has extensive teaching experience in Business Economics and allied disciplines at reputed institutions including the National Institute of Technology Kurukshetra,Harayana, St. Berchmans College,Kerala and Bishop Abraham Memorial College, Kerala. Her areas of expertise include Business Economics, Public Policy, Health Economics, and Development Studies. She has actively contributed to interdisciplinary research projects funded by ICSSR and has published research papers in Scopus-indexed international journals. With a practical and application-oriented teaching approach, she focuses on connecting economic theories with real-world business and policy challenges to enhance student learning and analytical skills.