lecture1 - Professor Jay Bhattacharya Spring 2001 Econ 11:...

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Professor Jay Bhattacharya Spring 2001 Econ 11--Lecture 1 1 Spring 2001 Econ 11- Lecture 1 1 Econ 11: Intermediate Microeconomics • Professor Jay Bhattacharya – Office: – Phone: (310) 393-0411 x6396 – email: jay@rand.org • Office Hours – Tuesday, 11am-12:30pm or by appointment Spring 2001 Econ 11- Lecture 1 2 Preliminaries • Textbook – Nicholson, Microeconomic Theory: Basic Principles and Extensions , 7th ed. • Recommended: Friedman , The Hidden Order: The Economics of Everyday Life • Recommended: Sowell , Basic Economics: A Citizen’s Guide to the Economy • Requirements – 4 Problem Sets (20% of grade) – Midterm Exam (25% of grade) – Final Exam (55% of grade) Spring 2001 Econ 11- Lecture 1 3 Teaching Assistants • There are 5 Teaching Assistants – Becky Acosta (rjacosta@ucla.edu) – Alex Alencar (aalencar@ucla.edu) – Chuling Chen (chench@ucla.edu) – Chris McKelvey (mckelvey@aristotle.sscnet.ucla.edu ) – Rodrigo Penaloza (rodrigo@ucla.edu) • Each will hold weekly sessions to work on problems and take questions. Spring 2001 Econ 11- Lecture 1 4 Introduction to Price Theory • Price theory is concerned with the behavior of consumers and firms facing resource constraints • The main questions addressed by price theory include: – What role do prices play in determining the consumption and production of goods in an economy? – How are prices set in a free market? – How efficiently are goods allocated in a free market? • By the end of the quarter, everyone should be able to answer the diamond-water paradox. Spring 2001 Econ 11- Lecture 1 5 Preferences, Technology, and Constraints • A recurring theme of the course is that preferences, technology, and constraints are conceptually different items. • Price theory does not explain consumer preferences nor producer technology—they are taken as given. • All of the power of price theory derives from preferences and technology interacting with constraints to ultimately determine choices. Spring 2001 Econ 11- Lecture 1 6 The Neoclassical Model • Consumers pick a combination of goods within their constraints (given prices) that make them happiest.
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This note was uploaded on 02/11/2012 for the course ECON 51 at Stanford.

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lecture1 - Professor Jay Bhattacharya Spring 2001 Econ 11:...

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