• Intermediate Microeconomics

    Dear EC3010,
    Here are some Internet resources that have been selected for you based on the topics covered in class. The videos and study materials are categorized according to the syllabus of the class. New posts will be added each week so be sure to check in updates! I hope you will find them helpful on your quest for economic knowledge!
    Email me with any questions or comments at a75312@aup.fr
    -B

Tax Incidence

Elasticity of Demand and Taxation Many products are subject to indirect taxation imposed by the government. Good examples include the excise duty on cigarettes (cigarette taxes in the UK are among the highest in Europe) alcohol and fuels. Here we consider the effects of indirect taxes on a producers costs and the importance of price … Continue reading

Substitution and Output Effects

Let factor inputs are substitutes, and the price of one factor input (input 1) has changed. How will demand change for second factor input (input 2)? Price of input1(Price of substitute) SE vs OE Demand for input2 increase SE > OE increase increase SE < OE decrease decrease SE > OE decrease decrease SE < … Continue reading

Costs

Production and Cost Minimization <– Click the link above to access an explanation of cost minimization. Let y – firm’s output, TC(y) – total cost, ATC(y)= TC(y)/y – average total cost. Given TC = VC+FC – the sum of fixed and variable cost. And, it must be borne in mind – the short run differs from … Continue reading

Firms and Technology

Firms and Technology <– Click the link above to access an explanation of Firms and Technology, including information on Special Isoquants.     Isoquants show the locus of input combinations for which output is constant. Isoquants cannot cross. Marginal rate of substitution which measures the slope of an isoquant. The isoquants for perfect substitutes are parallel … Continue reading

Producer Theory

Short Run Cost Curves from Short Run Production:   The Firm’s Supply Curve from Marginal Cost:   Industry Supply Curves and the Role of Entry and Exit:   Relating Short Run and Long Run Cost curves:   Consumer and Producer Supply:

Choice Under Uncertainty

Be sure to check out Professor Dunz’s notes on Uncertainty posted on Blackboard!! Choice Under Uncertainty  <– Click the link above to access a Powerpoint on the Choice Under Uncertainty Theory The following link include notes on Uncertainty Provided by the University of New York Uncertainty  (Page 106) Expected Utility Model:

Life-Cycle Model

Two-Period Consumption Model <– Click the Link above to access a Powerpoint on the Two-Period Consumption Model   The following links include additional notes and outlines on Intertemporal Budget Constraints and the Consumption-Savings Models: Choice Over Time; (Page 85) Two-Period Consumption Model    

The Labor Supply Model

The Labor Supply Model  <– Click the link above to access examples on the Labor Supply Model   Labor Supply Theory:   Substitution and Income Effects on the Backward Bending Supply Curve of Labour:   Quasilinear Utility and Demand:

Measuring Changes in Consumer Welfare

Consumer Welfare <– Click the link above to access an outline on Consumer Welfare. Includes Effects of Government Policy on Consumer Welfare!   Deriving Demand from Utility:   Income and Substitution Effects:   Demand Derived from Substituion Effect:   The Slutsky Equation and Demand Curves:   Compensating Variation and Equivalent Variation: