Econ 101: Principles of Microeconomics

Department of Economics, SHSS

Shiv Nadar University
Monsoon 2023

1 Instructor
Parul Gupta
Office: D116-B
Email: parul.gupta@snu.edu.in
Office Hours: Monday/Wednesday 11AM-12 noon, or by appointment on
Monday/Tuesday/Wednesday/Thursday

2 Teaching Assistants
To be announced.

3 Course Description
Microeconomics is the analysis of economic behavior of a decision making unit, often an individual consumer or a firm. Principles
of Microeconomics is an introductory undergraduate course that teaches the fundamentals of microeconomics behind that decision
making. At SNU, this is the first course that is offered to the undergraduate students in economics. This course is designed
to provide a foundation for economic analysis and a broad understanding of the economic issues at micro level. This course begins
with a discussion of supply and demand and the basic forces that determine an equilibrium in a market economy. Next, it introduces
a framework for learning about consumer behavior and analyzing consumer decisions. We then turn our attention to firms and
their decisions about optimal production, and the impact of different market structures on firms’ behavior. Time permitting, the
final section of the course will provide an introduction to some of the more advanced topics that can be analyzed using
microeconomic theory.

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 4 Academic Integrity
Students can work together on the take home assignments; however, submission of individual copies are mandatory. On
examinations, any form of academic dishonesty (colluding, copying or using unauthorized material) is strictly prohibited. Any
such act will be taken very seriously.

5 Evaluation
One home assignment (20%)
One midterm exam (30%)
Final exam (50%).

6 Textbook
Mankiw, N. Gregory,. Principles of Microeconomics, 7th Edition
The Economy by CORE Econ, e-book available at https://www.core-econ.org/the-economy/book/text/0-3-contents.html (optional)

7 Topics

7.1 Week 1

• Expectation setting
• Basic mathematical tools and concepts: Linear equations graphs, systems of equations, algebra, introductory calculus
(derivatives of polynomials and power functions), optimization, basic geometry and mensuration (area of triangle, rectangle)
• Key concepts in economics

7.2 Week 2 (Chapter 4: The Market Forces of Supply and Demand)

• Demand Curve and Supply Curve: movements along the curves and shifts
• Equilibrium: Concept and Comparative Statics

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7.3 Weeks 3 and 4 (Chapter 5: Elasticity and its Applications, Chapter 6: Supply Demand and
Government)

• Elasticity of Demand and Supply: Concept and Applications

• Government Policies: Taxes and Price Control

7.4 Week 5 (Chapter 7: Consumers, Producers and Efficiency of Markets, Chapter 8: Costs of
Taxation)

• Consumer surplus, producer surplus

• Deadweight loss of taxation

7.5 Week 6 (Chapters 3 and 9: Gains from trade, and International trade)

• Gains from trade

7.6 Weeks 7 and 8 (Chapter 21: Theory of Consumer Behaviour)

• Preference and Utility: Indifference Curves

• Affordability: Budget Lines
• Optimality: Consumer Equilibrium

• Effect of Changes in Price: Derivation of Demand Curve

• Decomposition of Price Effect into Substitution and Income Effects
• Normal Good, Inferior good and Giffen Good

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7.7 Weeks 9 and 10 (Chapters 13 and 14: Costs of Production and Firms in Competitive Market)

• Theory of Firm: iso-quants and iso-costs

• Profit maximization and cost minimization

7.8 Weeks 1 1 , 1 2 , 1 3

• Monopoly (if time permits)

• Externalities (if time permits)
• Revision