Paan Jindapon-EC308

Intermediate Microeconomics

EC 308 Section 321 Spring 2012

Classroom: Bidgood Hall 219

Section 2: MW 5 – 6:15 p.m.

Office Hours: MTWR 2:30 – 4:00 p.m.

Instructor: Paan Jindapon

Office: Alston Hall 264

Phone: 348-7841

Email: pjindapo@cba.ua.edu

 

Required Textbook

Intermediate Microeconomics and Its Application by Walter Nicholson and Christopher Snyder.

 

Prerequisite

EC 110 and MA 121 or MA 125 or equivalent. All C&BA students must be admitted to the upper division of the College of Commerce. All students (except A&S economics majors) must have earned 55 or more semester credit hours.

 

Objectives

Students will master the basic tools of microeconomic analysis in order to better understand consumer behavior and production/pricing decisions under different market structures.

 

Course description

Examination of the theory of price and the theory of resource allocation. Topics include demand theory, production and cost functions, pricing and output under competitive and noncompetitive conditions.

 

Topics

Chapter 2      Utility and choice

Chapter 3      Demand curves

Midterm 1: Wednesday, February 8

 

Chapter 4      Uncertainty

Chapter 5      Game theory

Midterm 2: Wednesday, March 7

 

Chapter 6      Production

Chapter 7      Costs

Chapter 8      Profit maximization and supply

Midterm 3: Wednesday, April 11

 

Chapter 11    Monopoly

Chapter 12    Imperfect competition

Final: Friday, May 4, 7:00 – 8:30 p.m.

 

 

Grading structure

- Seven problem sets at 2% each,                        14%

- Three midterm exams at 24% each,                  72%

- One final exam                                                      14%

 

Your grade depends on the following scale.

A+ [97,100]          B+ [87,90)            C+ [77,80)            D+ [67,70)            F    [0,60)

A   [93,97)            B   [83,87)            C   [73,77)            D   [63,67)

A-  [90,93)            B-  [80,83)            C-  [70,73)            D-  [60,63)

 

Attendance policy

Attendance is strongly recommended but not required. Students are responsible for all lecture material, including all in class announcements.

 

Make-up policy

Late assignments will never be accepted. There will be no make-up exam. Students who miss a midterm exam and have a legitimate excuse (provide documentation) will have the weight of the other midterm exam and the final exam adjusted accordingly. Students who miss two midterm exams will not pass the course. Any conflict with the testing dates should be reported to me immediately.

 

Homework #1

 

Chapter 2

Problems 2.3, 2.4, 2.5, 2.6, 2.10

 

Due Wednesday, January 25, 5 p.m.

 

Homework #2

 

Chapter 3

Problems 3.1, 3.3, 3.6

 

Additional problems

4. Tom spends all his income on basketball (X) and football (Y) tickets. He earns $500 per month and always likes football twice as much as he likes basketball. Football tickets cost $50 each.

a. Find his best feasible bundles when PX = 15, 20, 25, 30.

b. Draw Tom’s demand for basketball tickets.

 

5. Eli budgets $80 per week for his coffee (X) and muffins (Y). His utility function is U(X,Y) = (XY)1/2. A coffee shop sells coffee for $2 per cup and muffins for $5 each.

a. Draw Eli’s budget constraint and find his best feasible bundle. Also show the indifference curve that goes through the best feasible bundle. What is his maximum utility?

b. Find his best feasible bundles when PX = $3 and $4.

c. Draw Eli’s demand for coffee.

d. Find his best feasible bundles when M = $100 and $120.

e. Draw the Engel curve for coffee.

f. Is coffee an inferior good? Is coffee a Giffen good? Explain.

 

6. Read the following conversion:

Mark:     Any good that satisfies the law of demand is a normal good.

Trent:     Any normal good satisfies the law of demand.

 

Who is correct, Mark, Trent, or neither? Explain carefully. Hint: Discuss your answer using income and substitution effects.

 

Due Wednesday, February 1, 5 p.m.

Homework #3

 

Chapter 4

Problems 4.1, 4.3, 4.5, 4.6, 4.8

 

Due Wednesday, February 22, 5 p.m.

Homework #4

 

Chapter 5

Problems 5.1, 5.2, 5.5, 5.6, 5.8

 

Due Wednesday, February 29, 5 p.m.

 

Homework #5

 

Chapter 6

Problems 6.2, 6.4, 6.7, 6.8

  

Due Wednesday, March 28, 5 p.m.

Homework #6

 

Chapter 7

Problems 7.1, 7.2, 7.3, 7.4, 7.5

 

Due Wednesday, April 4, 5 p.m.

Homework #7

 

Chapter 11

Problems 11.1, 11.2, 11.3, 11.6, 11.7

 

Due Monday, April 23, 5 p.m.