Course Contents

1. Introduction to Microeconomics  Microeconomics : The allocations of scarce resources 2. Supply and Demand together  Demand  Supply  Market equilibrium  Shocking the equilibrium: comparative statics  Elasticities  Effect of sales tax  Quantity supplied need not equal quantity demand  When to use the supply-and-demand model 3. A consumer’s constrained choice  Preference  Utility  Budget constraint  Constrained consumer choice 4. Demand  Deriving demand curves  Effects of an increase in income  Effects of a price increase  Revealed preference 5. Consumer welfare and policy analysis  Consumer welfare  Market consumer surplus  Effects of government policies on consumer welfare 6. Firms and production  The ownership and management of firms  Production  Short – run production : one variable and one fixed input  Long – run production : two variable inputs  Returns to scale  Productivity and technical change

Course Synopsis

This course provides preliminary learning regarding the principles of microeconomics that apply to the decisions of individuals (consumers and producers). The course will well equip the students with the analytical tools to study the forces of demand and supply and their determinants in the competitive market framework. Main objective of this course is to provide the students with a sound base of the theory of consumer behavior, the consumer welfare, and the theory of production using algebra, graphs and calculus. It will enable the students to understand and analyze real world problems. Prerequisite Course: Basic mathematical economics (Maj/Eco-102) or equivalent course.

Course Learning Outcomes

At the end of this course students would be able to:  analyze the demand and supply functions, market equilibrium, and the impact of government policies in the competitive market framework.  derive the consumer demand based on the consumer behavior and budget constraint.  understand the concept of consumer welfare and the role of government policies in its determination.  comprehend the short run and long run production functions.