Last day notes How does this course come together Keep in...

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Last day notes How does this course come together? Keep in mind that there are two “general” questions in microeconomics 1. How do consumers decide what to buy? 2. How do producers decide what to make? Those have guided and driven everything we did in here Consumer side Producer side Preferences (ICs) Capabilities (PPFs) Budget line Revenue function Consumer problem Producer problem (evolved thru course) Demand curve Supply curve Consumer surplus Producer surplus Elasticity Industrial organization (PC vs mono) 2-period consumption w/ interest rates Law of diminishing marginal product Prices provide incentives for producers to make the things consumers want (as expressed by what they’re willing to give up to get it). When goods/services become more desired by consumers, prices rise to induce more producers to make the good in question (recall what would happen to Q* if P increased in PC, for example). The rise in price also ensures that the consumers most capable of buying the good and
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