This course is the first of a two-quarter sequence in microeconomic theory. This course covers the theory of consumer choice, the theory of the firm, and the concept of equilibrium. The course will also include applications of economics to policy issues such as income taxation and education subsidies. By the end of the quarter we will use calculus in some examples during lecture, but calculus will not be necessary on problem sets or exams. Students who are not comfortable with math should take Public Policy 301, Mathematical Preliminaries, concurrently with this class.
Problem sets are due at the beginning of lecture on the day they are due.
Late problem sets will not be accepted. The midterm will be in class on Monday, October 30 and will cover material from the first ten lectures. You must obtain written permission from the Dean of Students to be excused from an exam. Revealed preference Ch. Cost minimization Ch.