Economics and the structure of economic models. The demand and supply framework. Theory of consumer demand: utility theory; individual and market demand functions; comparative statics of consumer’s equilibrium; demand elasticity; expenditures and elasticity; consumer surplus; labour and saving optimal decisions. Theory of supply: technology and costs; competitive market supply. General equilibrium and the two fundamental theorems of welfare economics. Competitive equilibrium. Non-competitive markets: monopoly; game theory and oligopoly.

Bibliography

Robert H. Frank, Microeconomia, McGraw-Hill, 2007.