Intermediate Microeconomic Theory
Description: A market economy is dependent on the price system to guide in decisions related to the production, distribution, and consumption of goods and services. Microeconomics is about describing the economic behavior and decisions made by individual economic agents. These behaviors affect relative prices that act as signals in a market economy to guide production and consumption decisions.
Worksheet #1 -- Equilibrium AnalysisMicroeconomics Glossary
I. An Introduction
Economics as a Social Science
The Optimization Principle.
Technology and Production Relationships (in the Short Run).
II. The Principles of Equilibrium Analysis
Exogenous Demand-side Shocks
Exogenous Supply-side Shocks
Exogenous Shocks to Both Sides of the Market
III. Consumer Theory and Optimization Analysis
The Utility Surface
A Consumer Optimum
Consumer reaction to changes in market price or household income.
Price changes and corresponding substitution & income effects.
Demand Curve Derivation.
IV. Strategy and Exchange
The Edgeworth Box
Defining a Pareto Optimum.
V. Production and Cost Theory
A Producer Optimum
The Costs of Production in the Short Run
Production Technology in the Long Run.
Costs and Cost Minimization in the Long Run.
VI. Market Theory
Profit Maximization and Output Decisions
An Analysis of Competitive Markets
Pricing Power and Monopoly
Pricing Power and Price Discrimination
VII. Factor Markets
Labor Supply Decisions and Labor Market Equilibrium
Savings Behavior -- The Supply of Capital
Investment Decisions -- The Demand for Capital