ECON 302                                                     

Intermediate Microeconomic Theory

Fall 2008

Dr. Dao

Review for First Exam

 

·        Normative vs. Positive Economics

·        Perfectly competitive market

·        Equilibrium price and equilibrium quantity

·        Shortage vs. Surplus

·        Effects of Changes in Supply and Demand on Equilibrium price and quantity

·        Income Elasticity of Demand

·        Price Elasticity of Demand

·        Cross price elasticity

·        Transitivity assumption

·        Perfect substitutes vs. Perfect complements

·        Price consumption curve and Demand curve

·        Expected value

·        Inferior vs. Normal goods

·        Income and Substitution Effects of Change in Price

·        Measure of risk

·        Calculation of risk premium

·        Individual vs. Market Demand

·        Indifference curves

·        Marginal rate of substitution

·        Optimal combination (mix)

·        Price elasticities of supply and demand

·        Price supports vs. Price ceilings