6. fundamental concepts of microeconomics 1.objectives and methods of microeconomics 2.the consumer...
TRANSCRIPT
![Page 1: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/1.jpg)
6. Fundamental Concepts of Microeconomics
1. Objectives and Methods of Microeconomics2. The Consumer3. The Firm4. The Market5. Basic Issues in Welfare Economics
![Page 2: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/2.jpg)
6.1 Objectives and Methods of Microeconomics
Art Work 1: David Dalla Venezia, No. 269, Oil on Canvas, 2000
![Page 3: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/3.jpg)
Conflict resolution and Coordination
Art Work 2: Theater Bonn, Germany, FRIDA KAHLO, 2003. Photo: Thilo Beu.
![Page 4: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/4.jpg)
6.2 The Consumer
Fig. 6.1 The Individual Demand Curve
![Page 5: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/5.jpg)
Increasing Income
Fig. 6.2 Comparative Static Analysis of Demand as Income Increases
![Page 6: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/6.jpg)
6.3 The Firm
Fig. 6.3 Equilibrium Output Decision of a Perfectly Competitive Firm
![Page 7: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/7.jpg)
Equilibrium Supply
Fig. 6.4 Equilibrium Supply for Alternative Prices
![Page 8: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/8.jpg)
Supply Curve
Fig. 6.5 The Supply Curve of the Firm
![Page 9: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/9.jpg)
Comparative Statics of Supply
Fig. 6.6 Comparative Static Analysis of the Individual Supply Curve
![Page 10: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/10.jpg)
6.4 The Market
Fig. 6.7 Deriving the Market Demand Curveby Horizontal Aggregation of the Individual Demand Curves
![Page 11: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/11.jpg)
Market Supply
Fig. 6.8 Deriving the Market Supply Curveby Horizontal Aggregation of Individual Supply Curves
![Page 12: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/12.jpg)
Market Equilibrium
Fig. 6.9 Market Equilibrium
![Page 13: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/13.jpg)
Comparative Statics of Equilibrium
Fig. 6.10 Comparative Static Analysis of the Market Equilibrium
![Page 14: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/14.jpg)
6.5 Basic Issues in Welfare Economics
Fig. 6.11 Socially Optimal and Perfectly Competitive Level of Production
![Page 15: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/15.jpg)
Inter-firm Allocation
Fig. 6.12 Cost-effective inter-firm Allocation
![Page 16: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/16.jpg)
Inter-consumer Allocation
Fig. 6.13 “Benefit-effective” Inter-consumer Allocation
![Page 17: 6. Fundamental Concepts of Microeconomics 1.Objectives and Methods of Microeconomics 2.The Consumer 3.The Firm 4.The Market 5.Basic Issues in Welfare Economics](https://reader035.vdocuments.us/reader035/viewer/2022062314/56649f4f5503460f94c71356/html5/thumbnails/17.jpg)
Market Failure
Fig. 6.14 Market Failure due to Negative Externalities