An intermediate course in microeconomic analysis.
I. Consumer Theory. Utility functions and indifference curves. Income and substitution effects. The Slutsky equation. The expenditure function, compensating and equivalent variation, and consumer surplus. Selected applications to savings and labour supply, including the effects of taxes and benefits.
II. Producer Theory. Production and cost functions. Firm and industry supply. Perfect Competition and Monopoly.
III. Strategic Choice. Basic ideas in game theory. Applications to oligopoly.
IV. General equilibrium and welfare. Competitive equilibrium. Efficiency of equilibrium. Welfare criteria.
V. Topics in welfare economics. Public goods, externalities, second best pricing.
VI. Uncertainty and information. Choice under uncertainty. Insurance markets. Asymmetric information. Selected applications.
Note: Graduate Teaching Assistants (who are often PhD students) will teach classes on this course.