In this two-semester course, we will further develop the fundamental microeconomics tools that you have learned in the Principle of Economics. The course consists of five parts: the theory of the consumer, the theory of the firm, partial equilibrium, general equilibrium, and market failures.

This semester (Microeconomics (1)), we begin by modeling how consumers make their decisions, followed by how firms make decisions. After studying individual markets in isolation, we will analyze a general equilibrium model of two interconnected markets, and review the efficiency properties of the competitive system.

Then, next semester (Microeconomics (2)), we will learn how markets function under different conditions (perfect competition, monopoly, and oligopoly). Finally, we will investigate market failures, the circumstances in which competitive markets fail to produce efficient outcomes.