HE101 Principles of Microeconomics Course Description The main aim of this course is to provide a basic understanding of Microeconomics.

The course will cover the theory of households making consumption and labour supply decisions, the theory of firms making input choices and output decisions and different types of market structures that these firms operate in. This course will also expose students to new developments in the field of microeconomics which have now come to assume a central role, such as game theory and the strategic interactions between firms, pricing with market power, and policies to deal with externalities such as environmental pollution.

Proposed Lecture Schedule Week No. Week 1 Jan 11-15, 2010 Lecture 1 Week 2 Jan 18- 22, 2010 Lecture 2, Tutorial 1 Week 3 Jan 25-29, 2010 Lecture 3, Tutorial 2 Week 4 Feb 1-5, 2010 Lecture 4, Tutorial 3 Week 5 Feb 8-12, 2010 Lecture 5, Tutorial 4 Week 6 Feb 15-19 , 2010 Lecture 6, Tutorial 5 Topics 1 Markets and Prices 1.1 Nominal and Real Prices 1.2 Supply and Demand 2. Supply and Demand 2.1 Shift and Movement of Curves 2.2 Elasticities 3 Consumer Theory 2.1 Consumer Behavior 2.2 Individual and Market Demand 4. Individual and Market Demand 4.1 Income and Substitution Effects 4.2 Network Externalities 5 The Theory of Production 5.1 Total Product Curve 5.2 Returns to Scale 6 The Cost of Production 6.1 Short and Long Run 6.2 The Learning Curve Quiz 1 to be conducted during Lecture 6 but due to Chinese New Year, there will be changes which will be announced in due course. 7 Profit Max and Competitive Supply 7.1 Perfectly Competitive Markers 7.2 Constant Cost Industry Recess 8 Monopoly 8.1 Monopoly Power Readings PR&K Chs.1, 2 PR&K Ch 2 PR&K Ch 3 PR&K Ch 4 PR&K Ch 6 PR&K Ch 7

Week 7 Feb 22-26 , 2010 Lecture 7, Tutorial 6 Week 8 March 1-5, 2010 Week 9 March 8-12, 2010

PR&K Chs 8, 9

PR&K Ch 10

Lecture 8, Tutorial 7 Week 10 March 15-19, 2010 Lecture 9, Tutorial 8 Week 11 March 22-26, 2010 Lecture 10, Tutorial 9 Week 12 March 29 -April 2, 2010 Lecture 11, Tutorial 10 Week 13 April 5-9, 2009 Lecture 12, Tutorial 11 Week 14 April 12-16, 2010 Tutorial 12

8.2 Social Cost of Monopoly power Review quiz questions plus tutorial questions 9 Pricing with Monopoly Power 9.1 Price Discrimination 9.2 Two-part Tariff 10 Pricing with Imperfect Competition 10.1 Bundling 10.2 Monopolistic Competition 10.3 Oligopoly 11 Imperfect Competition and Game Theory 11. 1 Cartel 11.2 Gaming and Strategic Decisions 12 Market Failure 12.1 Externalities and Public Goods 12.2 Correcting Market Failures Quiz 2 to be conducted during Lecture 12 Review Quiz questions plus tutorial questions

PR&K Ch 11 PR&K Chs 11, 12

PR&K Chs 12, 13 PR&K Ch 18

Basic Text P&R Cat. No: Robert S. Pindyck, Daniel Rubinfeld and Winston T.H. Koh Microeconomics, An Asian Perspective, Prentice Hall, 2006 HB172.P648M

Method of Instruction Lectures Tutorials Assessment Quizzes Class Participation Final Examination 20% 10% 70% Office No. HSS-04-78 HSS-04-38 DID 6790-4761 6790-6736 E-mail asbchew@ntu.edu.sg dkannika@ntu.edu.sg 2 hours per week 1 hour per week

Lecturer/Coordinator Prof Chew Soon Beng Assistant Prof Kannika Damrongplasit