ECON 3011A (2014-15 Term1)

Intermediate Microeconomic Theory

Instructor:
Prof. Leung, Tin Cheuk (tleung@cuhk.edu.hk)
Teaching Assistant:
Ye, Lei (l.ye@link.cuhk.edu.hk)
Lecture Time:
Monday 2:30-4:15pm (ELB LT4)
Wednesday 1:30am-2:15pm (ELB LT4)
Tutorial Time: TBA
Introduction:
This course covers standard topics in microeconomic theory at a level that is more
advanced than that of Basic Micro but less abstract and less technical than that of
graduate course. It aims to provide the theoretical tools that are necessary for studies
in various applied fields and also to serve as a bridge to further study at the graduate
level.
Prerequisites are basic microeconomics, calculus, optimization methods, linear
algebra, and elementary statistics. Students must be prepared to spend at least 5 hours
a week on self study.
The course is structured as follows. There will be 3 hours of lecturing every week. In
addition, there is a one-hour tutorial. During the tutorials, the teaching assistant will
discuss the weekly problem set. Students are required to work through the problem set
before attending tutorials. Exam questions will be in a format similar to those in the
problem sets.
You will find this course rather demanding. There is a textbook and most chapters of
it will be covered. Our treatment will be slightly more advanced that that of the
textbook. The pace is rather fast and you are expected to do a lot of self-reading.
Despite the large size of this class, interaction is much emphasized. During lectures
and tutorials, students will be called upon to answer questions, and their answers will
be graded. Students should prepare themselves before coming to lectures and
tutorials.

Learning outcomes:
After completing this course, the student should be able to:
1. Understand the fundamental principles and structure of the market mechanism
of resource allocation.
2. Understand the factors that affect allocative efficiency of markets.
3. Understand the basics of strategic thinking in game-theoretical settings.
4. Be equipped adequately for higher studies in theoretical and applied
economics.

Topics to be covered:
1. Methodology: Optimization and Comparative Statics
2. Consumption Theory and Demand Analysis
3. Decision Under Uncertainty
4. Production Theory and Supply Analysis
5. General Equilibrium
6. Competition and Market Structure
a. Perfect Competition
b. Monopoly
c. Oligopoly
7. Game Theory
Assessments:
Class participation
Midterm Exam (90 minutes)
Final Exam (90 minutes)

15%
40%
45%

Grading is based on the distribution of overall marks. The assignment of grades

follows strictly of the University guidelines.
Class participation:
(i)
Tutorial (10%): each attendance in tutorial earns you 2%. The maximum
points you can get from tutorial participation is 10% of your final grade.
(ii)
Lecture Q&A (5%): you can get 0.5% if you answer my question at least
once during a lecture. The maximum points you can get from lecture Q&A
is 5% of your final grade.
Homework will be posted on a regular basis (mostly bi-weekly). Doing it is not
mandatory, but will be highly useful for your study. TAs will go over the homework
during the tutorials.
Exams Time:
The Midterm is scheduled to take place on October 12nd, 2015.
The Final Exam is scheduled to take place on November 30th, 2015.

Textbook:
Varian, Hal (2014) Intermediate Microeconomics, Ninth Edition, Norton
Course Website:
Announcement, homework, and other materials can be seen or downloaded from the
course website at https://sites.google.com/site/intermedmicrotheory.
Honesty in Academic Work:
Students must observe the Universitys policy on Honesty in Academic Work (please
see http://www.cuhk.edu.hk/policy/academichonesty/). The Chinese University of

Hong Kong places very high importance on honesty in academic work submitted by
students, and adopts a policy of zero tolerance on cheating in examinations and
plagiarism. Any related offence will lead to disciplinary action including termination
of studies at the University.