TAILIEUCHUNG - INTERMEDIATE MICROECONOMICS: A Modern Approach
The success of the first six editions of Intermediate Microeconomics has pleased me very much. It has confirmed my belief that the market would welcome an analytic approach to microeconomics at the undergraduate level. My aim in writing the first edition was to present a treatment of the methods of microeconomics that would allow students to apply these tools on their own and not just passively absorb the predigested cases described in the text. I have found that the best way to do this is to emphasize the fundamental conceptual foundations of microeconomics and to provide concrete examples of their application rather than to attempt to provide an encyclopedia of. | CONTENTS Preface xix The Market Constructing a Model 1 Optimization and Equilibrium 3 The Demand Curve 3 The Supply Curve 5 Market Equilibrium 7 Comparative Statics 9 Other Ways to Allocate Apartments 11 The Discriminating Monopolist The Ordinary Monopolist Rent Control Which Way Is Best 14 Pareto Efficiency 15 Comparing Ways to Allocate Apartments 16 Equilibrium in the Long Run 17 Summary 18 Review Questions 19 Budget Constraint The Budget Constraint 20 Two Goods Are Often Enough 21 Properties of the Budget Set 22 How the Budget Line Changes 24 The Numeraire 26 Taxes Subsidies and Rationing 26 Example The Food Stamp Program Budget Line Changes 31 Summary 31 Review Questions 32 VIII CONTENTS Preferences Consumer Preferences 34 Assumptions about Preferences 35 Indifference Curves 36 Examples of Preferences 37 Perfect Substitutes Perfect Complements Bads Neutrals Satiation Discrete Goods Well-Behaved Preferences 44 The Marginal Rate of Substitution 48 Other Interpretations of the MRS 50 Behavior of the MRS 51 Summary 52 Review Questions 52 utility Cardinal Utility 57 Constructing a Utility Function 58 Some Examples of Utility Functions 59 Example Indifference Curves from Utility Perfect Substitutes Perfect Complements Quasilinear Preferences Cobb-Douglas Preferences Marginal Utility 65 Marginal Utility and MRS 66 Utility for Commuting 67 Summary 69 Review Questions 70 Appendix 70 Example Cobb-Douglas Preferences Choice Optimal Choice 73 Consumer Demand 78 Some Examples 78 Perfect Substitutes Perfect Complements Neutrals and Bads Discrete Goods Concave Preferences Cobb-Douglas Preferences Estimating Utility Functions 83 Implications of the MRS Condition 85 Choosing Taxes 87 Summary 89 Review Questions 89 Appendix 90 Example Cobb-Douglas Demand Functions Demand Normal and Inferior Goods 96 Income Offer Curves and Engel Curves 97 Some Examples 99 Perfect Substitutes Perfect Complements Cobb-Douglas Preferences Homothetic Preferences Quasilinear Preferences Ordinary .
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