Microeconomics 101

1. Introduction to Economics
2. The Supply and Demand Model
3. Demand
4. Supply
5. Market Equilibrium
6. Changes in Equilibrium

7. Elasticity
8. Utility Maximization
9. Production and Profit Maximization
10. Types of Markets
11. Government Regulation
12. Externalities and Public Goods

Introduction to Economics

This category provides a very basic introduction to the field of economics and prepares students and readers to move on to the other sections of the site.

• What Is Economics?
• Microeconomics vs. Macroeconomics
• Economics as the "Dismal Science?"
• Positive Versus Normative Analysis in Economics

The Supply and Demand Model

This category goes through the basics of the supply and demand model that is widely used in economics.

• The Circular-Flow Model of the Economy
• The Importance of the Supply and Demand Model

Demand

This category introduces the concept of demand and the demand curve. It also explains what shifts the demand curve and goes through some demand curve algebra.

• What Is Demand?
• The Determinants of Demand
• The Demand Curve

Supply

This category introduces the concept of supply and the supply curve. It also explains what shifts the supply curve and goes through some supply curve algebra.

• What Is Supply?
• The Determinants of Supply
• The Supply Curve

Market Equilibrium

This category introduces the concept of market equilibrium and explains how equilibrium is calculated.

• Supply and Demand Equilibrium
• Calculating Economic Equilibrium
• Supply & Demand Practice Question
• 10 Supply and Demand Practice Questions
• The Effects of a Black Market Using Supply and Demand

Changes in Equilibrium

This category introduces the concept of changes in equilibrium, or comparative statics, and explains how to calculate those changes both qualitatively and quantitatively.

• Market Distortions
• Bottle Water Bans and Substitution Effects

Elasticity

This category introduces the concept of elasticity and shows how it is calculated. It also outlines the different types of elasticity and illustrates an important application of the elasticity concept.

• A Beginner's Guide to Elasticity
• Price Elasticity of Demand
• Price Elasticity of Supply
• Income Elasticity of Demand
• Cross-Price Elasticity of Demand
• Arc Elasticity
• Using Calculus To Calculate Price Elasticity of Demand

• Using Calculus To Calculate Price Elasticity of Supply
• Using Calculus To Calculate Income Elasticity of Demand
• Using Calculus To Calculate Cross-Price Elasticity of Demand
• Elasticity Practice Question
• What's the Price Elasticity of Demand for Gasoline?
• Adventures in Downward Sloping Demand Curves and Elasticity

Utility Maximization

This category introduces the utility maximization framework and shows how consumers' demand is derived.

• The Budget Constraint
• Introduction to Utility Maximization

Production and Profit Maximization

This category introduces various measures of revenue, cost and profit and shows how firms make production decisions to maximize profit.

• The Production Possibilities Frontier
• What are Opportunity Costs?
• Opportunity Costs and Tradeoffs
• Baseball Players and Opportunity Costs

• A Season Later: Baseball Players and Opportunity Costs
• Introduction to Revenue
• Understanding Costs - How to Understand and Calculate Cost Measures
• Marginal Revenue and Marginal Cost Practice Question

Types of Markets

This category gives an overview of different types of market structures and describes how prices and quantities are set in each.

• Introduction to Competitive Markets
• What You Need to Know About Monopolies
• Federal Efforts to Control Monopoly
• Monopolies, Mergers, and Restructuring
• Introduction to Monopolistic Competition

Government Regulation

This category analyzes the impact of various types of government intervention on the amount of value created in a market.

• The Effect of Income Taxes on Economic Growth
• How Good Intentions Lead to Crushing Marginal Tax Rates on the Working Poor
• FairTax - Income Taxes vs. Sales Taxes
• Should Income Tax Rates Depend on Lifetime Earnings?
• Payroll Tax Reduction - One Approach to a Carbon Tax

• Do Richer People Pay a Higher Proportion of Tax Under a Flat Tax?
• Gas Tax and Carbon Tax FAQ
• Oregon's Mileage Tax: A Truly Bad Idea
• How Do High Small Business Corporate Tax Rates Hurt The Economy?
• Should Governments Legalize and Tax Marijuana?

Externalities and Public Goods

This category introduces the concept of externalities, or market side effects, and discusses the effect of externalities on the value created by a market. It also introduces various types of goods that result in market failures.

• Public Goods, Common Resources and Club Goods
• Promoting Economic Growth and Reducing Externalities - Pigou Club
• Banning Lightbulbs to Combat an Externality
• The Logic of Collective Action