| Objectives: |
The aim of the microeconomics course is to teach how individuals, firms, and markets make decisions through basic economic models; to enable students to gain the ability to evaluate price formation, resource allocation, and market functioning within an analytical framework. This course aims to enable students to interpret the economic consequences of different market structures and policy interventions, and to analyze real-world economic problems from a microeconomic perspective. |
| Content: |
Week Content Title Description 1 Basic Economic Problems & Economic Order Topics covered include “the main problems of every economy” and “comparison of economic systems.” 2 Supply and Demand Analysis Demand curve, supply curve, equilibrium concept, and graphs. 3 Elasticity Concepts Price, income, cross-elasticity; aggregate expenditure relationship. 4 Consumer Theory – Cardinal Utility Cardinal utility, marginal utility, consumer equilibrium, consumer equilibrium setup. 5 Consumer Theory – Ordinal & Indifference Curves Indifference curves, budget line, ordinal consumer equilibrium. 6 Consumer Equilibrium Changes Income-substitution effects, Giffen goods, Engel curves, compensated demand. 7 Market Demand and Elasticity: The transition from individual demand to market demand; the role of elasticity effects on the market. 8 MIDTERM EXAM 9 Production Theory – Basic Concepts: Production function, marginal/productivity analyses. 10 Cost Theory – Short Run: Fixed/mobile inputs, short-run cost curves, diminishing returns. 11 Cost Theory – Long Run and Economies of Scale: Long-run cost structure, returns to scale analyses. 12 Market Structures: Perfect Competition: Firm and industry equilibrium conditions in a perfectly competitive market. 13 Market Structures: Monopoly & Imperfect Competition: Analysis of monopoly, monopsony, and oligopoly markets. 14 General Equilibrium & Market Failures: Pareto efficiency, public goods, environment, externalities, and asymmetric information. |