Microeconomics

Microeconomics

1. Demand, supply, equlibrium

   • Elasticities
     • Income elasticity of demand
     • Price elasticity of supply
     • Price elasticity of demand
     • Cross-price elasticity of demand
   • Law of
     • demand
     • supply
   • Determinants of
     • demand
     • supply
   • Market Efficiency
     • Allocative efficiency
     • Price rationing

2. Government intervention

   • Indirect taxes
     • tax imcidence
       • consumer surplus
       • producer surplus
     • government revenue
   • Subsidies
     • effects on government and producers
   • Price controls
     • Maximum/ price ceiling
       • shortage
     • Minimum/ price floor
       • surplus

3. Market Failures

   • Positive externalities
     • production
     • consumption
   • Negative externalities
     • production
     • consumption

4. Theory of firms

   • market structure
     • perfect competition
     • monopoly
       • government intervention and approval
     • oligopoly
     • monopolisitc competition
     • market failure
     • comparing different market structures
   • costs, revenues, prdfit
     • breakeven point
       • normal profit
       • long -run for perfect competitors
       • AR=ATC
     • profit maximization point
       • short-run for perfect competitors
       • monopoly
       • supernormal profit
       • MR=MC
     • shut-down point
       • P<AVC
       • loss-minimizing
     • diagrams and calculations