EC 121 Intermediate Microeconomics
EC 121 Intermediate Microeconomics (2026 Fall)
Syllabus (PDF)
What is new
I updated the syllabus (Sep. 28)
I will start taking attendance from Oct 5th. Please read the syllabus.
Class 1 covered the material on Consumer Behavior before Section 2.1 (Sep 28)
Course description
This course provides a rigorous treatment of microeconomic theory and serves as a bridge to graduate-level courses in general equilibrium theory. It develops consumer choice theory, tools for welfare analysis, the theory of the firm, and partial equilibrium analysis.
Course schedule
Topics are listed in the order given in the syllabus. The syllabus does not specify individual lecture dates.
1. Consumer's Behavior
Where Does the Demand Function Come From?
- Preferences and utility functions
- Marginal rate of substitution
- Demand functions, income and substitution effects
- Slutsky equation
- Integrability: when can we recover the utility function from the demand function?
Lecture notes
Lecture Note on Consumption Theory (PDF)
Sample Homework
2. Consumer Welfare
How Do We Measure Consumer Well-Being?
- Compensating and equivalent variation
- Approximation by area variation
Lecture notes
Lecture Note on Welfare Analysis (PDF)
Related handouts
Summary of Willig (1976), "Consumer's Surplus Without Apology" (PDF)
Handout: Hausman's (1981) Method for Exact Consumer's Surplus and Deadweight Loss (PDF)
3. Firm's Behavior
Where Does the Supply Function Come From?
- Profit maximization
- Cost minimization
Lecture notes
Lecture Note on Production Theory (PDF)
4. Partial Equilibrium Analysis
How Are Market Demand and Price Determined?
- Supply and demand equilibrium
- Market efficiency
- Effects of tax
Lecture notes not yet posted.
Course information
Assessment: See the syllabus for details.
- Homework: 70%.
- Final exam: 30%.
Homework must be written in LaTeX. Late submissions receive zero points.
Textbooks
Lecture notes are the main course material. Useful references:
- Andreu Mas-Colell, Michael D. Whinston, and Jerry R. Green, Microeconomic Theory.
- Michihiro Kandori, Mighty Microeconomics—A Guide to Thinking Like an Economist, Cambridge University Press.
For attendance requirements, AI use, collaboration, and accommodations, please consult the syllabus.