Introduction

Microeconomics (Econ7790)

Benson Tsz Kin Leung1

Fall 2022
1 Hong Kong Baptist University

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Me

• Name: Benson.
• Academic Background: Marketing in UG and Econ in PG.
• Email: btkleung@hkbu.edu.hk.
• Office hour: (Let me know by email)

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TA

• Name: Zixiao.
• Email: zixiaof@hkbu.edu.hk.

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You

• Let me know if you have problems following.

• Let me know if you have questions.
• Let me know if you need help.

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Promotion - Subject Pool Sign up

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Course Materials
Course Materials

• Book:
• Snyder, C. & Nicholson, W Microeconomic Theory: Basic
Principles and Extensions. Thomson South-Westrn, 12ed.
(Required)
• Varian, Hal R., Intermediate Microeconomics: A Modern
Approach, Eighth Edition. New York, New York: W.W. Norton
& Company, Inc., 2010. (Reference)
• Mas-Colell, A., Whinston, M. D., & Green, J. R.
Microeconomic theory. New York: Oxford university press.
(Advanced)
• Slides.

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Assessment
Assessment

• Assignments - 30%.
• Group project (Proposal) - 10%
• Group project (Presentation) - 20%
• Final Examination - 40%

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Assignments (30%)

• (Approx.) One per chapter, 6 in total.

• With one week deadline.

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Proposal (10%)

• No more than 2 pages.

• Each group with five people.
• Submit group list by 23/9.
• Discuss/analyze interesting real world topics/policies.
• e.g., Carbon Tax, Inefficient utilization of library space,
Vaccination, etc.
• Topic, Questions, Analyze the problem, solution
• Submit by 21/10.

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Presentation(20%)

• 15 mins presentation.
• Last lecture.

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Final Examination (40%)

• One test.
• Test your understanding, will upload past exam for your
reference

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Economics
Economics

• Economics is the science that studies human behavior under

limited resources.
• How we allocate resources.
• which applications to accept
• whom to spend time with
• which companies to sell to
• which broadband companies to license to
• How people/entities make decision under limited resources.
• which master program to enroll
• which job offers to accept
• which phone to buy
• which movies to watch

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How we will learn

• To use formal, yet simple, math to represent people’s decision

making process.
• Benson’s preference about milk, tea and coffee.
• Benson maximizes his preference given his budget constraint.
• Analyze outcome of an Economic problem.
• What would Benson buy in a supermarket with only milk, tea
and coffee if he has 200HKD?
• How much sales would increase given a discount?
• What would happen if the Gov increases tax?
• What would happen if the merger is approved?

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Models and Assumptions

• To answer these questions, we use models, with simple

assumptions.
• Does not describe perfectly the real world.
• Simple enough to capture the key characteristics.
• We question whether assumptions are appropriate.

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Course Outline

• Consumer behavior: 4 lectures.

• Uncertainty: 1 lecture.
• Game Theory and Imperfect competition: 2 lectures.
• Producer Theory: 2 lectures.
• Competitive Market Outcome: 2 lectures.

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