Microeconomics Ii

AY2021/2022 Semester 2

Principals of Microeconomics has introduced basic concepts in market and discussed how markets work in general. The aim of this course is to deepen the understanding of behaviors in the market by further examining the decision process of economic agents and the implied welfare consequences. In the first half of the course, we focus on how individuals make their decisions in the market by discussing two broad topics. The first is the analysis of price and income changes in the market. This discussion builds on what have already been covered in Principals of Microeconomics. The second topic is individual decision-making regarding time, risk, and uncertainty where we will also examine how the asset market works. In the second half of the course, we focus on analysing the welfare effects of outcomes in markets and society. To this end, students will learn different measures of welfare and criteria for efficiency, and how perfectly competitive markets help achieve socially optimal outcomes. Subsequently, we will discuss the problems related to making choices for society and how these may be reconciled.