1. Principles of Microeconomics Shomu Banerjee
1. Introduction
Emory University
Spring 2013

2. What is Economics about?
Allocation of scarce resources across competing wants
Opportunity cost
Individual choice
Decision-making at the margin

3. Two Notions Arithmomorphic Ex.: 3.72 Dialectic Ex.: friend IS IS NOT

4. Equilibrium & Efficiency

5. Preview Trade-offs: Opportunity cost
Trade-offs at a national level: PPF
Basis for international trade
Market : Demand, Supply, Equilibrium
Market interventions: Price controls, quantity controls, taxes/subsidies

6. Monopolistic competition
Preview cont’d
Behind the demand curve: consumer theory
Behind the supply curve: producer theory
Market structures: # of buyers, # of sellers
Perfect competition
Oligopoly
Monopoly
Duopoly
Monopolistic competition

7. Preview cont’d Market failure Strategic interaction: Game theory
Imperfect competition
Externalities
Public goods
Asymmetric information
Strategic interaction: Game theory
Duopoly and oligopoly

8. Grading policy 2 midterms: 20% each Final exam: 30%
Online HW (Sapling): 15%
Individual in-class clicker quizzes: 5%
Group in-class clicker quizzes: 10%