Wie microeconomics, (2nd ed ) international ed )

PART1. INTRODUCTION TO MICROECONOMICS. CHAPTER 1.  ANALYZING ECONOMIC PROBLEMS. Is the New Economy Really New? 1.1 Why Study Microeconomics? 1.2 Three Key Analytical Tools. Constrained Optimization. Equilibrium Analysis. Comparative Statics. 1.3 Positive and Normative Analysis. LEARNING-BY-DOING EXERCISES. 1.1 Constrained Optimization: The Farmers Fence. 1.2 Constrained Optimization: Consumer Choice. 1.3 Comparative Statics with Market Equilibrium in the U. S. Market for Corn. 1.4 Comparative Statics with Constrained Optimization. CHAPTER 2.  DEMAND AND SUPPLY ANALYSIS. What Gives with the Price of Corn? 2.1 Demand, Supply, and Market Equilibrium. Demand Curves. Supply Curves. Market Equilibrium. Shifts in Supply and Demand. 2.2 Price Elasticity of Demand. Elasticities along Specific Demand Curves. Price Elasticity of Demand and Total Revenue. Determinants of the Price Elasticity of Demand. Market-Level versus Brand-Level Price Elasticities of Demand. 2.3 Other Elasticities. Income Elasticity of Demand. Cross-Price Elasticity of Demand. Price Elasticity of Supply. 2.4 Elasticity in the Long Run versus the Short Run. Greater Elasticity in the Long Run Than in the Short Run. Greater Elasticity in the Short Run Than in the Long Run. 2.5 Back-of-the-Envelope Calculations. Fitting Linear Demand Curves Using Quantity, Price, and Elasticity Information. Identifying Supply and Demand Curves on the Back of an Envelope. Identifying the Price Elasticity of Demand from Shifts in Supply. APPENDIX Price Elasticity of Demand along a Constant Elasticity Demand Curve. LEARNING-BY-DOING EXERCISES. 2.1 Sketching a Demand Curve. 2.2 Sketching a Supply Curve. 2.3 Calculating Equilibrium Price and Quantity. 2.4 Comparative Statics on the Market Equilibrium. 2.5 Price Elasticity of Demand. 2.6 Elasticities along Special Demand Curves. . Part 2: CONSUMER THEORY . CHAPTER 3. CONSUMER PREFERENCES AND THE CONCEPT OF UTILITY. Why Do You Like What You Like? 3.1 Representations of Preferences. Assumptions about Consumer Preferences. Ordinal and Cardinal Ranking. 3.2 Utility Functions. Preferences with a Single Good: The Concept of Marginal Utility. Preferences with Multiple Goods: Marginal Utility, Indifference Curves, and the Marginal Rate of Substitution. Special Utility Functions. LEARNING-BY-DOING EXERCISES. 3.1 Marginal Utility. 3.2 Marginal Utility That Is Not Diminishing. 3.3 Indifference Curves with Diminishing MRSx,y. 3.4 Indifference Curves with Increasing MRSx,y. CHAPTER 4.  CONSUMER CHOICE. How Much of What You Like Should You Buy? 4.1 The Budget Constraint. How Does a Change in Income Affect the Budget Line? How Does a Change in Price Affect the Budget Line? 4.2 Optimal Choice. Using the Tangency Condition to Understand When a Basket Is Not Optimal. Finding an Optimal Consumption Basket. Two Ways of Thinking About Optimality. Corner Points. 4.3 Consumer Choice with Composite Goods. Application: Coupons and Cash Subsidies. Application: Joining a Club. Application: Borrowing and Lending. Application: Quantity Discounts. 4.4 Revealed Preference. Are Observed Choices Consistent with Utility Maximization? APPENDIX.  The Mathematics of Consumer Choice. LEARNING-BY-DOING EXERCISES. 4.1 Good News/Bad News and the Budget Line. 4.2 Finding an Interior Optimum. 4.3 Finding a Corner Point Solution. 4.4 Corner Point Solution with Perfect Substitutes. 4.5 Consumer Choice That Fails to Maximize Utility. 4.6 Other Uses of Revealed Preference. CHAPTER 5. THE THEORY OF DEMAND. Does It Pay To Raise Prices? 5.1 Optimal Choice and Demand. The Effects of a Change in Price. The Effects of a Change in Income. The Effects of a Change in Price or Income: An Algebraic Approach. 5.2 Change in the Price of a Good: Substitution Effect and Income Effect. The Substitution Effect. The Income Effect. Income and Substitution Effects When Goods Are Not Normal. 5.3 Change in the Price of a Good: The Concept of Consumer Surplus. Understanding Consumer Surplus from the Demand Curve. Understanding Consumer Surplus from the Optimal Choice Diagram: Compensating Variation and Equivalent Variation. 5.4 Market Demand. 5.5 Network Externalities. 5.6 The Choice of Labor and Leisure. As Wages Rise, Leisure First Decreases, Then Increases. The Backward-Bending Supply of Labor. 5.7 Consumer Price Indices. LEARNING-BY-DOING EXERCISES. 5.1 A Normal Good Has a Positive Income Elasticity of Demand. 5.2 Finding a Demand Curve (No Corner Points). 5.3 Finding a Demand Curve (with a Corner Point Solution). 5.4 Finding Income and Substitution Effects Algebraically. 5.5 Income and Substitution Effects with a Price Increase. 5.6 Income and Substitution Effects with a Quasi-Linear Utility Function. 5.7 Consumer Surplus: Looking at the Demand Curve. 5.8 Compensating and Equivalent Variations with No Income Effect. 5.9 Compensating and Equivalent Variations with an Income Effect. . Part 3: PRODUCTION AND COST THEORY . CHAPTER 6.  INPUTS AND PRODUCTION FUNCTIONS. Can They Make It Better And Cheaper? 6.1 Introduction to Inputs and Production Functions. 6.2 Production Functions with a Single Input. Total Product Functions. Marginal and Average Product. Relationship Between Marginal and Average Product. 6.3 Production Functions with More Than One Input. Total Product and Marginal Product with Two Inputs. Isoquants. Economic and Uneconomic Regions of Production. Marginal Rate of Technical Substitution. 6.4 Substitutability among Inputs. Describing a Firms Input Substitution Opportunities Graphically. Elasticity of Substitution. Special Production Functions. 6.5 Returns to Scale. Definitions. Returns to Scale versus Diminishing Marginal Returns. 6.6 Technological Progress. APPENDIX. The Elasticity of Substitution for a CobbDouglas Production Function. LEARNING-BY-DOING EXERCISES. 6.1 Deriving the Equation of an Isoquant. 6.2 Relating the Marginal Rate of Technical Substitution to Marginal Products. 6.3 Returns to Scale for a CobbDouglas Production Function. 6.4 Technological Progress. CHAPTER 7. COSTS AND COST MINIMIZATION. Whats Behind the Self-Service Revolution? 7.1 Cost Concepts for Decision Making. Opportunity Cost. Economic versus Accounting Costs. Sunk (Unavoidable) versus Nonsunk (Avoidable) Costs. 7.2 The Cost-Minimization Problem. Long Run Versus Short Run. The Long-Run Cost-Minimization Problem. Isocost Lines. Graphical Characterization of