Economics 201                                                                                     Prof. Alexander Karaivanov

Intermediate Microeconomic Theory I                                                               Spring 2017

http://www.sfu.ca/~akaraiva/e201.html                                                              akaraiva@sfu.ca

 

 

SYLLABUS

 

 

Introduction

This course is designed to provide an understanding of microeconomic theory at the intermediate level.  Its goal is to equip you with the basic terminology, analytical tools, and intuition to discuss and address microeconomic issues. The topics covered include consumer and production theory in competitive markets as well as an introduction to general equilibrium analysis.

 

Organization

The webpage for the course is:

http://www.sfu.ca/~akaraiva/e201.html

All course materials, assignments and announcements will be posted on the webpage in pdf or html format.

           

Assignments and Grading

There will be three problem sets on which you may work in groups but each student is required to submit his/her solutions separately. The problem sets are take-home and will be posted about a week and a half before each of the exams. They will be handed back to you before the exam date to help you prepare better. Late submission of no more than 1 day will be penalized by reducing your score by 50%. No exceptions will be made. There are also two midterms (see the schedule below for their dates) and a final. The final exam is comprehensive, the midterms are not. Your course grade will be based on your performance in all the problem sets, midterms, and final as follows:

- problem sets: 15% of the overall grade (5% each);

- midterm exams: 40% of the overall grade (20% each)

- final exam: 45% of the overall grade.

 

Barring exceptional circumstances, no exam re-takes will be allowed. Students who do not appear at an exam must provide a certified note (e.g., from a doctor, preferably the SFU health service) clearly stating the reason for their absence on the exam date. If I have a reason to believe that a student has cheated on one of the exams I will give this student a grade of F for the course. In addition, he/she would be subject to disciplinary punishment by the University.

 

Readings

The textbook for the course is:

Varian, H.  Intermediate Microeconomics with Calculus, 1st edition, W. W. Norton, 2014.

Exercises for the tutorials will be assigned from:

Bergstrom, T. and H. Varian, Workouts in Intermediate Microeconomics, 9th edition, W.W. Norton, 2014.

Older editions of these books are perfectly usable but please double-check whether any page, exercise, or chapter numbers have changed.

Course Schedule

The relevant chapters from the textbook are given in brackets. You are encouraged to read the whole chapters, however for examination purposes you will be only responsible for material covered in the lectures or in the tutorials. If material outside the textbook is covered in class I will post lecture notes on the course webpage. Supplementary clarifying notes on some concepts will be posted as well. The schedule below is for planning purposes only – deviations from it may occur.

 

Week 1 (Jan 4, 6)

Course organization and introduction

Budget constraint (Varian ch. 2)

 

Week 2 (Jan 11, 13)

Budget constraint (Varian ch. 2)

Preferences (Varian ch. 3)

                       

Week 3 (Jan 18, 20)

            Utility (Varian ch. 4)

            Choice (Varian ch. 5)

                       

Week 4 (Jan 25, 27)

            Choice (Varian ch. 5)

            Demand (Varian ch. 6)

                                   

Week 5 (Feb 1, 3)

            Demand (Varian ch. 6)

Income and Substitution Effects (Varian ch. 8)

 

Week 6 (Feb 8, 10)

            Income and Substitution Effects (Varian ch. 8)

            MIDTERM I (Friday, February 10)

           

READING BREAK (Feb. 13-17)

                                   

Week 7 (Feb 22, 24)

            Market Demand (Varian ch. 15)

            Equilibrium (Varian ch. 16)

                                                           

Week 8 (Mar 1, 3)

            Technology (Varian ch. 19)

Profit Maximization (Varian ch. 20)

                       

Week 9 (Mar 8, 10)

            Profit Maximization (Varian ch. 20)

            Cost Minimization (Varian ch. 21)

           

Week 10 (Mar 15, 17)

            Cost Minimization (Varian ch. 21)

            MIDTERM II (Friday, March 17)

           

Week 11 (Mar 22, 24)

Cost Curves (Varian ch. 22)

            Firm Supply (Varian ch. 23)

                                                           

Week 12 (Mar 29, 31)

Firm Supply (Varian ch. 23)

            Industry Supply (Varian ch. 24)

           

Week 13 (Apr 5, 7)

            General Equilibrium (Varian ch. 32)