ECO : Price Theory Fall 2014
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1 ECO : Price Theory Fall 2014 Instructor: Sanchari Choudhury Office: 301O ULEE Phone: Time: MWF 3:00P 3:50P Room: 242 ULEE Office Hours: WF 4:00P 5:30P, and by appointment Description: This is an intermediate course in Microeconomics. The primary objective of the course is to familiarize students with economic analyses involving the behavior of consumers and producers, as well as how they interact in the market place. The course will begin by introducing a framework for learning about consumer behavior and studying consumer decisions. The course will then focus on firms and their decisions regarding optimal production and how the different market structures impact the behavior and welfare of both firms and consumers. Finally, the course will cover other important topics including strategic decision making, behavior under uncertainty, and externalities and public goods. Prerequisite: C or better in ECO 1311 and ECO 1312, and either MATH 1309 or 1337 are prerequisites. Textbook: Microeconomics by R. S. Pindyck and D. L. Rubinfeld (8th Edition). Prentice Hall, Grading: Grades will be based on exams, problem sets, and pop quizzes: Pop attendance quizzes will count for 20% of the course grade. There will be a total of 10 quizzes (each 10 minutes) and I will drop your three lowest scores. There will be no makeup quizzes, so any missed quizzes automatically receive a score of zero. If you show up late to a quiz, then you simply have less time to do it. There will be no time extensions for showing up late. Note, I will award you 33% of the points for simply showing up and signing your name on the quiz. The quizzes serve two roles: (1) Lets you know what types of problems you can expect to see on the exams, (2) Allows me to take random attendance to see who is actually showing up for class. Problem sets will count for 20% of the course grade. There will be a total of three problem sets, and I will drop your lowest score. The problem sets will be a mix of both problems and short answer questions. Problems sets are to be submitted at the beginning of class the day they are due. Note, late assignments will be accepted only up to one day late, but will be automatically penalized by 10%. For example, if a problem set is due on a Monday, then the latest by which you can turn it in is on Tuesday at 3:00P, at which point 10% will automatically be deducted. If you are going to be late to class the day it is due, then it to me by 3:00P or it will be counted as late. 1
2 Exams will individually count for 20% of the course grade. There will be total of three exams that are not (explicitly) cumulative. I will NOT drop any of the three exams and NO makeup exams will be given unless a student asks for it in advance and for compelling reasons (i.e., serious illness, personal tragedy, etc.). If you miss an exam (unexcused), you will receive a zero. No exceptions! Issues with the grading on an exam must be brought to my attention within one week of the exam being returned. There will be a Core Exam given by the economics department to all students taking ECO 3301 and I will award 2% of extra credit to your final grade if you take the exam AND get an 80% or higher. Lecture notes, problem sets, answer keys, and other relevant information will be posted on the course webpage via Blackboard. Please check it regularly. Finally, with the exception of the Core Exam, I do NOT allow students to do any additional work for extra credit. All students are advised to consult with me throughout the semester to avoid end of the semester surprises. Conduct: All that I ask is that you be respectful to myself and your classmates. All cell phones should be put on silent and put away. All other electronic devices should also be put away unless they are explicitly being used for class purposes. Failure to follow these simple requests may turn me into this: Cell phones are not to be used as calculators. Calculators will be provided, if required, during exams. Class Schedule: First day of class: Mon, Aug 25 No class: Sep 1, Oct 13, Nov 28 Last day of class: Mon, Dec 8 Exam Schedule (tentative) and Important Dates: Exam I (20% of grade): Friday, October 3 Exam II (20% of grade): Friday, November 7 Exam III (20% of grade): Thursday, December 11, 3:00P 6:00P Core Exam (2% extra credit): Friday, November 21 Last Day to Drop Course: Friday, November 7 Except for Exam III, all exams will be held during the regular class time and in the same room (ULEE 242). In determining final grades I will use the following scale: A >= 90 C >= 70 A >= 88 C >= 68 B+ >= 84 D+ >= 64 B >= 80 D >= 60 2
3 B >= 78 D >= 58 C+ >= 74 F < 58 Student Learning Outcomes: By the end of this course students will be able to: 1. Apply the theory of consumer choice to explain and discuss consumer behavior. 2. Demonstrate their understanding of firm behavior in the short and long run using producer theory. 3. Apply the basics of game theory to the study of individual and firm decision making. 4. Analyze different theoretical or interpretive perspectives in the study of individuals, institutions, and cultures that shape economic, political and social experiences. 5. Evaluate critically the research outcomes, theory, and/or theoretical applications in the study of individuals, institutions, and cultures that shape economic, political and social experiences. 6. Demonstrate mastery of microeconomic concepts. Disability Accommodations: Students needing academic accommodations for a disability must first be registered with Disability Accommodations & Success Strategies (DASS) to verify the disability and to establish eligibility for accommodations. Students may call or visit to begin the process. Once registered, students should then schedule an appointment with the professor to make appropriate arrangements. Religious Observance: Religiously observant students wishing to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.). Excused Absences for University Extracurricular Activities: Students participating in an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue). Honor Code: All work undertaken and submitted in this course is governed by the University s honor code. If any student is unclear about the University s honor policy either in general or its particular application in this course please contact your instructor immediately. Syllabus Change Policy: With the exception of how course grades are determined (and the policy therein), this syllabus is a guide for the course and is subject to change. Course Outline: 1. Introduction: Markets and Prices (Week 1) Chapter 1 3
4 2. Basics of Supply and Demand (Weeks 1 and 2) Chapter 2, Sections , Consumer Behavior (Weeks 3 and 4) Chapter 3, Sections Individual and Market Demand (Weeks 4 and 5) Chapter 4, Sections *** Exam I: Topics 1 4 *** 5. Production and Costs (Weeks 6 and 7) Chapter 6, Sections , 6.4; Chapter 7, Sections Profit Maximization and Competitive Supply (Weeks 7 and 8) Chapter 8 7. Competitive Markets (Week 9) Chapter 9 8. Monopoly and Pricing with Market Power (Week 10) Chapter 10, Sections ; Chapter 11, Sections *** Exam II: Topics 5 8 *** 9. Uncertainty and Consumer Behavior (Weeks 11 and 12) Chapter 5, Sections , Introduction to Game Theory (Weeks 12 and 13) Chapter 13, Sections Oligopoly, Duopoly, and Monopolistic Competition (Weeks 13, 14, and 15) 4
5 Chapter Efficiency, Externalities, and Public Goods (Weeks 15 and 16) Chapter 16, Sections ; Chapter 18 *** Exam III: Topics 9 12 *** 5
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