Microeconomics

Rationale and Purpose of the Module: The primary aim of this module is to introduce students to the fundamentals of modern market-oriented microeconomic analysis. The economic way of thinking introduced in this module involves the use of key concepts and models to help students to begin to understand how a complex real world micro-economy operates. The module should educate students to think in terms of alternatives, help them to understand the cost of individual and firms choices and provide them with general frameworks to understand key microeconomic concepts and issues. This module aspires to develop the critical thinking abilities of students, not merely through the mastery of microeconomic concepts and techniques but also through a questioning approach to the body of knowledge which is facilitated primarily in the interactive smaller group weekly tutorial sessions and through the use of e-learning platforms.

Syllabus: What is economics is explored. Concepts such as scarcity, individual decision-making, trade-offs and opportunity cost along with distinctions between microeconomics vs macroeconomics and normative vs positive economics are emphasised. Markets are examined. The model of supply and demand is used to understand how market equilibrium prices and quantities are determined. Intervention in the market via price ceilings and price floors are also examined. The sensitivity of demand and supply to changes in key variables such as price and income is analysed through elasticity. Consumer choice using indifference curve analysis is presented. The latter part of the module focuses its attention on supply and costs of production. The different types of costs and how costs affect revenue and profits are examined. A perfectly competitive firms supply decision along with that of Monopoly (single priced vs price discrimination monopolists) are also studied.