Week 2

This week, we will use elasticities to study per-unit taxes and the behavior of a zero-cost monopolist. We will also start on the foundations of the Demand curve — consumer behavior.

I say “new” because it's worthwhile to go back and do the readings and practice from last week if you missed them.

Quiz 2

  • (Quiz 1 stuff)
  • Supply-and-demand model calculations
    • Finding the equilibrium
    • Evaluating price floors and ceilings

Quiz 3

  • (Earlier stuff)
  • Elasticities
    • Calculating elasticities
    • Interpreting elasticities and classifying goods — necessities vs luxuries, complements vs substitutes, normal vs inferior
    • Applying elasticities to the (zero-cost) monopoly problem
    • Applying elasticities to per-unit tax problems

New stuff on next week's quiz and midterm (anticipated)

  • Budgets
    • Graphing them
    • Determining if a bundle is affordable or not
    • Identifying a bundle X and Y, on the graph given expenditures on X and Y
    • Finding and interpreting the slope
  • Preferences — graphing them, etc.
  • Solving the consumer's problem and deriving Demand from it
Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License