Microeconomic Theory

This course provides a foundation of microeconomic theory and its applications. Students will explore supply and demand functions, including market equilibrium, elasticities, and consumer and producer surplus. Students study how supply and demand functions are impacted by external changes, and several different market structures are introduced to review their impact, including financial and labor markets as well as monopolies and oligopolies. Theories of consumer choice are explored, including utility theory and prospect theory, as well as other ideas emerging from behavioral economics. The theory of the firm is also introduced, detailing issues impacting production and supply. With this foundation, students explore the impact of outside influences on the market, including globalization, externalities such as pollution, and the impact of risk aversion; this section emphasizes the mechanisms which policy makers can use to address situations deemed suboptimal if market forces are left unchecked.