Economics | Intermediate Microeconomic Theory
E321 | 1769 | Chang

This is a course on microeconomic analysis.  The key word is
analysis.  Economics is a tool for understanding the world.  The
approach taken in this course is problem-solving.  Most books in
mathematics teach the same way.  They show you what the subject is all
about, but their main purpose is to show you how to do it.  It is the
belief of the instructor that you truly understand economics when you
are able to apply them to real-world problems.  The examples in the
text and the problem sets assigned should give you plenty of practice.
I also supplement materials in class.  Exam questions are constructed

The textbook is Price Theory and Applications, Fourth edition,
by Steven Landsburg, South-Western Publishing Company, 1999.  The
course has six parts.  The first part, Equilibrium and Gains from
Trade, is essentially a review of E201.  Students are responsible for
the material there.  The course formally begins with the Theory of
Demand.  We shall explore the decision making process of a consumer
and that of a profit-maximizing firm.  Then we move on to Welfare
Economics and Imperfect Competition.  We shall evaluate many public
policies and projects from social welfare viewpoint.  These four parts
constitute the core of the course.  The last part, Income
Distribution, will be covered if time warrants.

There are two exams in addition to the final exam.  The exams
are all essay questions.  Rigor in your reasoning is required for
receiving full credit.  Many questions bear close resemblance, if not
identical, to problems discussed in the text, in class, and the
assigned problem sets.  As a general policy, the exam will not include
the material presented the session before the exam.  The purpose is to
give you time to digest the material.  A copy of the Instructor's
manual, which is served as the answer key to the Problem Sets, is
reserved at the Reserve Library (Undergraduate section) for reference.
The grade is determined by the test results; there is no extra credit
in this course.  There are no provisions for make-up exams.  But if a
student has a legitimate excuse for missing one, the weight of his/her
final will be increased enough to make up the points missed.  The
final exam is comprehensive.