UPenn - Microeconomics: The Power of Markets 

The Power of Markets: Introduction

1.1.1 Opportunity Cost: Introduction

1.1.2 Opportunity Cost: The Cost of Education

1.1.3 Opportunity Cost: Numeric Example 1

1.1.4 Opportunity Cost: Numeric Example 2

1.1.5 Opportunity Cost: Numeric Example3

1.1.6 Opportunity Cost: Numeric Example 4

1.2.1 Scarcity: Introduction

1.2.2 Production Possibilities Frontier: Definition

1.2.3 Allocative Efficiency: Defining Marginal Cost and Marginal Benefit

1.2.4 Allocative Efficiency: When Marginal Cost Equals Marginal Benefit

1.2.5 Production Possibilities Frontier: Graphical Approach

1.2.6 Production Possibilities Frontier: Numerical Example

1.2.7 Production Possibilities Frontier: Understanding the Slope

1.2.8 Production Possibilities Frontier: Modeling Technological Change and Growth

1.2.9 Allocative Efficiency: Graphical Approach 1

1.2.10 Allocative Efficiency: Graphical Approach 2

Additional Readings: General Suggestions

Participate in a Purdue Research Project (Optional)

Additional Readings: Week 1

Opportunity Cost

Production Possibility Frontier (PPF)

Production Possibilities Frontier and Growth

2.1.1 Markets and Trade: Introduction

2.2.1 Comparative Advantage: Numerical Example 1 - Set up

2.2.2 Comparative Advantage: Numerical Example 2 - Individual PPFs

2.2.3 Comparative Advantage: Numerical Example 3 - Joint PPF

2.2.4 Comparative Advantage: Numerical Example 4 - Joint PPF Completed

2.3.2 Comparative Advantage: Definition

2.2.5 Comparative Advantage: Numerical Example 5 - Gains from Specialization

2.2.6 Comparative Advantage: Numerical Example 6

2.2.7 Comparative Advantage: Numerical Example 7

2.3.1 Absolute Advantage: Definition

2.4.1 Gaining from Specialization Through Trade

2.4.2 Gaining from Specialization: The Consumption Possibilities Frontier

2.4.3 Gaining from Specialization: General Graphical Approach

2.4.4 Gaining from Specialization: Imports and Exports

Additional Readings: Week 2

Comparative Advantage

Trade

3.1.1 Supply & Demand: Introduction

3.1.2 The Demand Curve

3.1.3 Shifts of Demand: Part 1

3.1.4 Shifts of Demand: Part 2

3.1.5 The Supply Curve

3.1.6 Shifts of Supply: Part 1

3.1.7 Shifts of Supply: Part 2

3.1.8 Market Equilibrium: Definition

3.1.9 Market Equilibrium: Understanding Who Buys and Who Sells

3.1.10 The Invisible Hand: Part 1

3.1.11 The Invisible Hand: Part 2

3.1.12 Changes in Demand: Effect on Market Equilibrium

3.1.13 Changes in Supply: Effect on Market Equilibrium

3.1.14 Simultaneous Changes in Demand & Supply: Effect on Market Equilibrium

3.1.15 Supply & Demand: Conclusion

Additional Readings: Week 3

The Demand Curve

The Supply Curve

Market Equilibrium

A Change in Market Equilibrium

4.1.1 Elasticity: Introduction

4.1.2 Elasticity of Demand

4.1.3 What Affects Elasticity of Demand

4.1.4 Perfectly Inelastic and Perfectly Elastic Demand

4.1.5 Elasticity Along a Straight Line Demand Curve

4.1.6 Elasticity and Revenue: Part 1

4.1.7 Elasticity and Revenue: Part 2

4.1.8 Unit Elastic Demand Curve

4.1.9 Cross Price Elasticity: Complements vs. Substitutes

4.1.10 Income Elasticity: Normal vs. Inferior Goods

4.1.11 Elasticity of Supply

4.1.12 Elasticity: Summary

4.2.1 Efficiency & Equity: Introduction

4.2.2 Consumer Surplus

4.2.3 Producer Surplus

4.2.4 Maximizing Total Surplus

4.2.5 T.S. at a Quantity Greater Than Equilibrium Quantity

4.2.6 T.S. at a Quantity Smaller Than Equilibrium Quantity

4.2.7 Efficiency & Equity: Conclusion

4.2.8 Price Ceiling

4.2.9 Price Floors: The Case of Minimum Wage

4.2.10 Calculating Total Surplus: Numerical Example

4.2.11 Price Ceilings: A Numerical Example

Additional Readings: Week 4

Elasticity of Demand

Elasticity of Demand & Revenue

Other Elasticity Terms

Consumer and Producer Surplus

5.1.1 Government Intervention: Introduction

5.1.2 Modeling a Tax

5.1.3 Modeling a Tax: Graphically Interpretation

5.1.4 Consequence of a Tax on Consumer and Producer Surplus

5.1.5 Consequence of a Tax on Total Surplus

5.1.6 Dead Weight Loss

5.1.7 Tax Incidence

5.1.8 Tax in Extreme Cases of Demand Elasticity

5.1.9 Tax in Extreme Cases of Elasticity of Supply

5.1.10 Taxes: Summary

5.1.11 Modeling a Subsidy

5.1.12 Consequence of a Subsidy on Total Surplus

5.1.13 Subsidy: Summary

5.1.14 Taxes: Numerical Example Part 1

5.1.15 Taxes: Numerical Example Part 2

The Power of Markets: Conclusion

Additional Readings: Week 5

Price Intervention

Taxes

Subsidies

Government Intervention

Final Exam