Week

Text, Math Handout

Topic

(0)  9/27

Chapter 1 & 2

Calculus Appendix, A.1-A.3

I.  Introduction

 (1)  10/1  

Chapter 3:  60-74

II.  Consumer Preferences:

    A.  Axioms of Rational Choice

    B.  Utility Functions

    C.  Level curves of utility function:  Indifference Curves

    D.  Marginal Rate of Substitution

III.  Common Utility Functions:  Cobb-Douglas, Perfect Complements (Leontief), Perfect Substitutes, CES

 (2)   10/8

74-75 & Calculus Appendix, A.4-A.6

Machina Handout

IV.  The Budget Constraint

V.  Mathematical Review of Optimization

 (3)  10/15

75-89

VI.  Utility Maximization and Demand Functions

 (4)  10/22

Chapter 4: 93-110

Midterm 1:  Monday, October 22

VII.  Comparative Statics of Demand

    A.  Income changes

    B.  Price changes (income and substitution effects)

 (5)   10/29

Chapter 4: 111-126

VII.  Comparative Statics of Demand (continued)

    C.  Compensated price changes and compensated

          demand functions.

    D.  Slutsky Equation   

 (6)   11/5

Chapter 5, 130-152

    E.  Demand Relationships among goods

    F.  Measures of Consumer Welfare

 (7)   11/12

Chapter 5:  152-164

Veteran’s Day Monday, November 12

Midterm 2:  Wednesday, November 14th

Supply of Labor: The Labor-Leisure Decision

 (8)   11/19

Supply of Labor: The Labor-Leisure Decision (continued)

11/22-11/23  Thanksgiving Holiday

 (9)   11/26

Chapter 16

Supply of Saving:  The Consumption-Savings Decision

Decision Making under Risk and Uncertainty

(10)  12/3

Decision Making under Risk and Uncertainty (continued)