Spring 2026 - ECON 113 D100

Introduction to Microeconomics (3)

Class Number: 1676

Delivery Method: In Person

Overview

Course Times + Location:

Jan 5 – Apr 10, 2026: Tue, 12:30–2:20 p.m.
Burnaby

Instructor:
Martin Santamaria
msantama@sfu.ca

Focused on basic competencies in microeconomics, this course is suitable for business and other students not intending to specialize in economics. Topics include gains from trade, supply and demand, prices, competition and monopoly, market failures, and government policies. Economic literacy is an important part of the course. Students who have taken ECON 103 first may not then take this course for further credit. Quantitative/Breadth-Soc.

COURSE DETAILS:

This course outline is based on 10 weeks of one two-hour lecture per week with the remaining weeks of lecture slots available for classroom experiments and three midterm exams.The first two midterms will count for 40% of the grade each, the last midterm will count for 20% of the grade. Most topics will likely be covered in one week but a few topics, especially those requiring experiments, may take a little longer to cover. The course is structured as follows: For each topic, corresponding chapters from Mankiw et al.’s textbook Principles of Microeconomics are assigned as the main reading. Additionally, because one of the goals of the course is to introduce real-world applications, textbook chapters are supplemented by suggested resources on real-world topics that illustrate the concepts covered. The idea is to show students how the key concepts in economics translate into real-world issues. This helps students understand how the material is relevant to them and helps them be more informed about current economic affairs.Supplementary materials for these topics are sourced from free online resources, mainly the free online textbook CORE Econ: The Economy, and sections from CORE Insights on the same website. Additional webpages or news articles may also be assigned for topics covered in each session.

FUNDAMENTAL PRINCIPLES

I.SCARCITY AND ECONOMIC TRADE-OFF

Rational Choice and Substitution: The Cost – Benefit analysis
Opportunity Cost
Sunk costs
Normative vs. Positive interpretation of Cost – Benefit principle Limitations of the Cost – Benefit analysis as a Positive principle

II.PRODUCTION POSSIBILITIES, COMPARATIVE ADVANTAGE, AND TRADE

Production possibility curve
Marginal cost as slope of Production possibilities frontier
Preferences and Marginal benefit
Allocative Efficiency
Absolute and Comparative Advantage
Gains from Trade

FUNDAMENTALS OF PRICE THEORY

III.SUPPLY, DEMAND, AND EQUILIBRIUM PRICE

Market and Prices
Individual and Aggregate Demand
Individual and Aggregate Supply
Market equilibrium

IV. ELASTICITY

The Elasticity of Demand
Elasticity of Supply
Other elasticities
Applications

V. EFFICIENCY OF COMPETITIVE MARKETS

Welfare: Consumer and Producer Surplus
Pareto Efficiency, Rawls, and Social Choice
Resource Allocation methods
Competitive Markets and Pareto Efficiency
Competitive Markets and Fairness

MARKET INEFFICIENCIES

VI. MONOPOLY AND INEFFICIENCY

Why monopolies arise
How monopolies make pricing and production decisions
Welfare Cost of a Monopoly
Price Discrimination
Public Policy towards Monopoly

VII. EXTERNALITIES

Marginal and Social Cost and Benefit
Taxes and Subsidies
The Coase Theorem

VIII. PUBLIC GOODS

Different kind of Goods: Non-excludable and non-rival goods
Free Rider Problems
Role of Government
Tragedy of the Commons

IX. INFORMATION ASYMMETRIES AND INEFFICIENCY

Market for Lemons
Moral Hazard
Adverse Selection

X. LABOR MARKETS

Demand for Labor
Supply of Labor
Equilibrium Wage
Minimum Wage analysis
Earnings and Discrimination

COURSE-LEVEL EDUCATIONAL GOALS:

This course provides a basic introduction to key issues in Microeconomics. The main goal is twofold: to introduce the student to the main ideas and questions in Microeconomics and to introduce the student to modern and historical real-world debates, which reflect these ideas. The objective of the course is that the students will learn not only the key debates and concepts in Microeconomics, but also gain an understanding of the real-world issues and their implications on society as a whole and on the students’ lives as individuals. Real-world events will be discussed to provide context for the abstract concepts and to motivate learning by connecting to the issues.Students will also be introduced to experiments as a method for learning about economic behaviour. This practice serves both as a pedagogical tool to aid students experience some of the concepts discussed in the course and as a conceptual introduction to the field of experimental economics.

Grading

First Exam 40%
Second Exam 40%
Third Exam 20%

NOTES:

Classroom Experiments
There will be two classroom experiments.
These experiments will be run using the free software provided on the webpage
https://economics-games.com/games
This webpage allows for experiments of up to 150 students at a time.
The first experiment will be about “Collective Action Problems” and the second experiment will be concerned with illustrating the idea of the “Tragedy of the Commons”.

Materials

REQUIRED READING:

The main textbook is Mankiw, Kneebone, and McKenzie (2019) Principles of Microeconomics, 9th Canadian Edition. Toronto, ON: Nelson.
Chapters and problems will be assigned from the main textbook.

REQUIRED READING NOTES:

Your personalized Course Material list, including digital and physical textbooks, are available through the SFU Bookstore website by simply entering your Computing ID at: shop.sfu.ca/course-materials/my-personalized-course-materials.

Department Undergraduate Notes:

Please note that, as per Policy T20.01, the course requirements (and grading scheme) outlined here are subject to change up until the end of the first week of classes.

Final exam schedules will be released during the second month of classes. If your course has a final exam, please ensure that you are available during the entire final exam period until you receive confirmation of your exam dates.

Students requiring accommodations as a result of a disability must contact the Centre for Accessible Learning (CAL) at 778-782-3112 or caladmin@sfu.ca.

***NO TUTORIALS DURING THE FIRST WEEK OF CLASSES***

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

At SFU, you are expected to act honestly and responsibly in all your academic work. Cheating, plagiarism, or any other form of academic dishonesty harms your own learning, undermines the efforts of your classmates who pursue their studies honestly, and goes against the core values of the university.

To learn more about the academic disciplinary process and relevant academic supports, visit:

SFU’s Academic Integrity Policy: S10-01 Policy
SFU’s Academic Integrity website, which includes helpful videos and tips in plain language: Academic Integrity at SFU

RELIGIOUS ACCOMMODATION

Students with a faith background who may need accommodations during the term are encouraged to assess their needs as soon as possible and review the Multifaith religious accommodations website. The page outlines ways they begin working toward an accommodation and ensure solutions can be reached in a timely fashion.

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