Econ 3010

Intro

This is the course website for Vanderbilt Economics 3010. This course focuses on the formal analysis of the behavior of individuals and firms and how these behaviors aggregate in a market. We will analyze market performance and determine how performance is influenced by various changes. This page will be continuously updated throughout the semester. Please check it on a regular basis. Consider subscribing to changes using a service such as Visual Ping or Wachete.

Mathematical Level

Some concepts and formulas from differential calculus will be used, but most of the presentations, homework and exams will involve diagrams, algebra and analytical reasoning. A review of the relevant mathematical concepts will occur on the first day of class.

Textbook(s)

Intermediate Microeconomics with Calculus: A Modern Approach by Hal R. Varian.
Workouts in Intermediate Microeconomics (Ninth Edition), by Theodore C. Bergstrom and Hal R. Varian.

Problem Sets

Problem sets will consist of selections from problems in the Workouts” book, as well as problems written by the instructor. The problem sets will be posted on this page in the schedule below. I encourage working on the homework in groups. The homework will be graded by the teaching assistant, and reviewed by the instructor.

Exams and Grading

There will be one midterms and a final exam. They are tentatively placed in the schedule below. Grading will be based 30% on midterm exams, 50% on the final exam, and 20% on homework.

Office Hours / Teaching Assistant

My office hours: Tuesday 1:00-2:00pm or by appointment in Calhoun 404. Matthew Chambers (TA) office hours: TBA.

Schedule

Week 1: Overview of Syllabus & Chapter 2.1-2.7: Budget Constraint.
Please Read: Review of Functions.
Problem Set(Due 1/14).

Week 2: Chapter 3.1-3.8: Preferences
Problem Set 1(Due 1/30)
Solutions

Week 3: Chapter 4.1-4.5: Utility

Week 4: Chapter 5.1-3&5.5 (Skip Lagrange Method).

Week 5: Chapter 6.1-6.8: Demand. Chapter 8.1-8.7: Slutsky Equation

Problem Set 2: (Due Feb 20.) Workouts: 6.1, 6.3, 6.5, 6.7, 8.1, 8.5, 8.10, 8.11, 9.1, 9.3, 9.11 For additional practice try 6.11 and 8.7 (No need to turn these two problems in.)

Week 6: Exam Feb 13th

Midterm exam covering Chapters 1-6 & 8
Key Concepts
Exam Solutions

Week 7: Chapter 9.1-9.4: Buying and Selling and Chapter 10.1-10.5: Intertemporal Choice

Week 8: Chapter 15.1-15.2,15.5-15.6,15.8,15.11: Market Demand

Spring Break

Problem Set 3: (Due 4/2) Workouts: Chapter 10: 10.1,10.3,10.9 Chapter 15: 15.1-15.4 & 15.7
Chapter 16: 16.1, 16.3, 16.5, 16.7, 16.9, 16.11.
Chapter 19: 19.0, 19.1, 19.3, 19.5, 19.9, 19.11.

Week 9 (Week of 3/16): Chapter 16.1-16.9: Equilibrium

Week 10 (Week of 3/23): Chapter 19:.1-19.10 Technology

Week 11: (Week of 3/31) Chapter 20.1,20.5-20.10: Profit Maximization Chapter 21.1,21.3-21.6: Cost Minimization

[CANCELED] Midterm exam covering Chapters 9-10, 15-16 and 19
Key Concepts

Week 12: (Week of 4/7) Chapter 22.1-22.3,22.5,22.7: Cost Curves

Practice Problems for Remainder of Class (No Need to Turn In) Chapter 20: 20.1, 20.3, 20.6, 20.7, 20.11
Chapter 21: 21.1, 21.3, 21.5, 21.7, 21.9 Chapter 22: 22.1, 22.3, 22.5, 22.9
Chapter 23: 23.1, 23.3, 23.7, 23.9
Chapter 24: 24.0, 24.5, 24.7, 24.11

This Problem:
Suppose f(x1,x2)=x113x213f(x_1,x_2)=x_1{}x_2{}f(x1,x2)=x131x231

  1. Find the conditional factor demands when w1=1w_1=1w1=1 and w2=4w_2=4w2=4
  2. What is the long-run cost function?
  3. Suppose in the short run, x2x_2x2 is fixed at 1000. What is the short-run cost function?
  4. In the short-run, when x2=1000x_2=1000x2=1000 how much does it cost to produce y=100y=100y=100?
  5. In the long-run how much does it cost to produce y=100y=100y=100?

Week 13: Chapter 23.1-23.9: Firm Supply and Chapter 24.1-24.6: Industry Supply

Week 14: Chapter 25.1-25.7: Monopoly and Chapter 26.1-26.6: Monopoly Behavior

Week 15: Chapter 32.1-32.7, 32.9-32.13: Exchange Chapter 34.1-34.3, 34.5-34.6: Welfare and Chapter 35.1,35.3-35.6: Externalities

Extra Practice Problems
Lots of Practice Problems

Final Exam: cumulative exam.
Key Concepts