Microeconomics Demystified: A Self-Teaching Guide

by Craig Depken

Overview

There’s no easier, faster, or more practical way to learn the really tough subjects

Microeconomics Demystified features a clear and easy-to-understand presentation of the concepts and principles of microeconomics, with generous applications and examples. This self-teaching guide comes complete with key points, background information, quizzes at the end of each chapter, and even a final exam. Simple enough for beginners but challenging enough for advanced students, this is a lively and entertaining brush-up, introductory text, or classroom supplement.

Product Details

ISBN-13:	9780071459112
Publisher:	McGraw Hill LLC
Publication date:	10/01/2005
Series:	Demystified
Pages:	336
Product dimensions:	7.42(w) x 8.94(h) x 0.64(d)

About the Author

Craug A, Depken II, Ph.D. (Arlington, TX) is an associate professor of economics at the University of Texas at Arlington. An award-winning teacher and researcher, he has published dozens of articles in professional and academic journals.

Table of Contents

	Acknowledgments	ix
	Introduction	xi
Chapter 1	The Language of Economics	1
	Summary	7
	Quiz	7
Chapter 2	Math Review	11
	Summary	16
	Quiz	16
Chapter 3	Production and Growth	19
	Production	19
	Production in a Robinson Crusoe Economy	20
	Economic Growth	23
	Gains from Trade	24
	Summary	33
	Quiz	33
Chapter 4	Demand and Supply	37
	Demand	38
	Supply	43
	Price as a Regulator in the Market	47
	Changes in Demand	50
	Changes in Supply	51
	Changes in Supply and Demand	52
	Government Interventions in the Market	55
	Price Floors and Ceilings	56
	Quantity Controls	58
	Taxation in the Supply and Demand Model	59
	Summary	66
	Quiz	67
Chapter 5	Elasticity	73
	Price Elasticity of Demand	74
	Income Elasticity of Demand	78
	Cross Elasticity of Demand	79
	Elasticity of Supply	79
	Applications of Elasticity	80
	Price Elasticity of Supply and Demand and the Burden of a Sales Tax	87
	Summary	89
	Quiz	90
Chapter 6	Consumer and Producer Surplus	93
	Consumer Surplus	93
	Producer Surplus	97
	Changes in Consumer and Producer Surplus and Changes in Supply and Demand	100
	The Impact of a Sales Tax on Consumer and Producer Surplus	102
	Summary	105
	Quiz	105
Chapter 7	Utility	111
	The Utility Function and Indifference Curves	112
	The Household's Income Constraint	114
	The Household's Consumption Equilibrium	118
	The Law of Demand and Utility Theory	120
	Income and Substitution Effects	122
	Substitution Effect	123
	The Income Effect	125
	Combining Substitution and Income Effects	126
	Summary	129
	Quiz	129
Chapter 8	Theory of the Firm	133
	Why the Firm?	134
	The Firm's Production Function and Isoquants	135
	Efficiency and the Firm	138
	The Firm's Cost Constraint	140
	A Firm's Cost Functions: Total Cost, Average Cost, and Marginal Cost	143
	Summary	147
	Quiz	148
Chapter 9	Perfect Competition	153
	Summary	164
	Quiz	164
Chapter 10	Theory of Monopoly	169
	Static Monopoly	169
	Efficiency Aspects of Static Monopoly	178
	Price Discrimination	181
	First Degree Price Discrimination	181
	Third Degree Price Discrimination	182
	Second Degree Price Discrimination	185
	Cartel Theory	188
	Contestable Market Theory	190
	Summary	191
	Quiz	192
Chapter 11	Monopolistic Competition and Oligopoly	197
	Monopolistic Competition	198
	Oligopoly	200
	The Kinked Demand Model	201
	Oligopoly with a Dominant Firm	202
	Strategic Interaction	204
	Cournot Duopoly Game	205
	Bertrand's Duopoly Game	207
	Summary	208
	Quiz	209
Chapter 12	Factor Markets	213
	Labor	215
	Labor Demand	215
	Labor Supply	217
	Labor Market Equilibrium	218
	Additional Topics in Labor Markets	220
	Capital Markets	230
	Demand for Capital	230
	Supply of Capital	231
	Capital Market Equilibrium	231
	Land	238
	Summary	240
	Quiz	242
Chapter 13	Market Failure and Government Intervention in Markets	245
	Public Goods	246
	Externalities	251
	Summary	262
	Quiz	263
Appendix A	Quiz Answers	267
Appendix B	Final Exam	279
	Final Exam Answers	309
	Index	313