PAM 200 – Microeconomics - Week 1 Lecture Notes
Welcome to Intermediate Microeconomics.
If I do a good job of teaching, and you are diligent about doing the work, this course has
the potential to be one of the most interesting and important of your entire undergraduate
We will learn a relatively small number of models: consumer theory, supply and demand,
monopoly, price discrimination, and oligopoly.
These models will then be applied to a
wide variety of situations.
In some sense, the range of questions that can attempt to
answer is limited only by our ability to grasp the models, and our imagination.
example, these models have been successfully used to analyze consumption bundles,
welfare programs, labor force participation, taxes and subsidies, international trade,
bargaining, firm pricing decisions, profit maximization, market-household production,
capital allocation decisions, education, minimum wages, marriage decisions, etc.
The first objective will be to teach you the basics of each of the models.
I will use verbal
descriptions, graphs, mathematics, and homework assignments as teaching tools.
can also use the assigned textbooks, and the on-line homework assignments as additional
For each on-line homework assignment there will be a practice session with
When you answer the practice questions you will obtain feedback immediately,
including an explanation for the correct answer.
After completing the practice
assignment, you can complete the actual homework assignment.
The on-line assignments
will be graded on-line, and the solutions will be available immediately after the
In many ways the easy part of the course is learning the models because it simply
involves following the directions (like cooking instructions).
The difficulty is in learning
when to apply each possible model.
I take a couple of approaches to help you with this
First, I will give examples in class.
Second, the assigned book
of Public Issues
provides an exceptional number of applications to current events.
in the homework assignments that I write I make an effort to force you to think through
applications and answer questions.
Finally, you are required to write two short original
papers applying the models that we have learned in class.
I have found that this is a very