[CORE][EC2101] Microeconomics Analysis I

I took this module under Hou Zhaoyang in 2010/11 semester 2.

In this course, you will have to be familiar and comfortable with:

1. Phenomenon of substitution effect and income effect due to price changes.
They work in the same direction for normal goods, opposite direction for inferior and giffen goods. After a price increase, the income effect overwhelms the substitution effect for giffen good

2. Finding the compensating and equivalent variation


3. Concept and shape of utility curve
Utility curves for complements
Utility curves for subsitutes
Utility curves for normal goods
Utility curves for Quasilinear preferences

4. Utility maximization for individuals
Utility curve must be tangent to the budget line.
MRS(XY)= MU(X)/MU(Y)

5. Profit Maximization for firms
P=MC for perfectly competitive firm
MR=MC for monopolistically competitive firm and monopoly
First order condition for profit maximization

To do well for the exams, I suggest making sure that you understand the economic concepts and theories very well, go through and analyse the tutorial questions that are done in class. You should do alright.