Profile

e-Catalog

Contact

Search

Cart

Intermediate Microeconomics: The Supply and Demand Model

Audience

Managers and prospective managers seeking to understand the theories and practice of consumer behavior and demand, and of production, cost, and supply

Prerequisites

A familiarity with basic economics

Course Aim

To introduce the learner to microeconomics and the supply and demand model

Learning Objectives

Explain the purposes of microeconomics. Describe the characteristics of microeconomic models. Interpret demand curves. Interpret supply curves. Explain the role of supply in the market. Determine the market equilibrium for a commodity. Explain the effects of shifts in supply and demand on market equilibrium. Explain the effects of government intervention on market equilibrium. Predict how changes in supply and demand will affect market equilibrium. Determine the price elasticity of demand for a good. Calculate the income elasticity and the cross-price elasticity of demand. Calculate the price elasticity of supply. Describe ad valorem and specific taxes. Explain the effect of specific tax incidence on consumers and suppliers. Describe the effects of ad valorem taxes.

Topics Covered

Introduction to Microeconomics - Microeconomics defined - Microeconomic models Demand and Supply - The demand curve - The demand function - The supply curve and function Market Equilibrium - Determining market equilibrium - Shocking the equilibrium - Government intervention - Hands-on: Predicting equilibrium changes Price Elasticity - Price elasticity of demand - Other demand elasticities - Price elasticity of supply Effects of Sales Taxes - Introducing sales taxes - Incidence of specific taxes - Effects of ad valorem taxes