The course is the fundamental microeconomics course which studies individual decision-making and its relation to market clearing price formation. It builds on classical consumer choice theory. Then, individual behaviors are further integrated into a closed and interrelated system in which the equilibrium values of all variables are simultaneously determined. This is in contrast to the partial equilibrium approach, where all variables, which are not directly related to the problem at hand, are taking to be given. The course develops a theory that attempts to predict the complete vector of individual final consumptions and individual productions from the fundamentals of the economy.
- Mas-Colell, Whinston and Green. (1995). Microeconomic Theory. New York: Oxford University Press. Chapters 1-3, 5, 6, 15-18.
- Lecture slides.