Microeconomic Theory I

ECON 212/3.0

Overview

Theory of markets and prices: decision‐making by individuals and firms, equilibrium conditions under various market structures, and issues of individual and social welfare. This course presumes a knowledge of calculus at the first‐year university level.

Learning Outcomes

Upon successful completion of the course, students will be able to:

  1. Explain what market demand and market supply represent, and derive both mathematical functions by formulating and solving constrained optimization problems.
  2. Explain what market equilibrium represents in the case of many price-taking consumers and suppliers, and calculate market equilibrium with taxes, subsidies, and quotas, or without any such policies.
  3. Express and analyze strategic decision making in decision trees and payoff matrices using game theory.  Explain, model, and solve the strategic decisions of monopolists and oligopolists.
  4. Model real-life consumption and supply decisions using consumer and producer theory, and constructively peer-review such models.