Introductory Micro (Shorter Videos): In my course we focus heavily on graphing, calculation, and interpretation. Intro Micro One: Graphing & Opportunity Cost What is Economics?  A brief overview to introduce the field of Economics. What is the foundation, and what is the difference between Micro and Macro?  Graphing Review  A quick review of graphing lines, crucial for economics.  Opportunity Costs and Budget Lines  An intro to the tradeoffs illustrated with Budget Lines, showing Opportunity Cost as a Slope.  Opportunity Cost & PPFa
 Plotting production possibilities frontier, calculating opportunity costs, and discussing why the PPF is bowed outward (concave to the origin).  Opportunity Cost & PPFb  Continuation of above.   Comparative advantage and trade example. Opportunity cost, absolute advantage, gains from trade.  LaissezFaire and Adam Smith  A discussion of Market versus Command Economies, Commandtype goods in the US, and Adam Smith.  Circular Flow  A brief look at the Circular Flow Diagram 
Intro Micro Two: Graphing Supply and DemandSupply/Demand Intro 1  What is demand? Demand Schedule?  Supply Demand Intro 2  A Focus on Supply and factors that can shift Demand and Supply  Equilibrium and Shifts  A graphical look at equilibrium, shortages, surpluses, and shifts in equilibrium  Supply/Demand Graphing A  Supply and demand using equations, algebra, and graphing. Equilibrium AND out of equilibrium situations like price floors/ceilings.  Supply/Demand Graphing B  Continuation of above.  Market Failures: Public and Private Goods  Here we discuss the characteristics of public goods and the importance of the idea. We define Rivalry and Excludability, discuss the free rider problem, and give some examples of each type of good.  Public and Private Goods: Numerical Example  We do a typical homework problem comparing the social demand for public goods with private goods. Using marginal benefits, we determine the optimal amount to buy at each price.  Producer and Consumer Surplus: Intro  The fundamental idea of total surplus, what does it mean?  What is a Deadweight Loss?  Here we talk about the fundamental idea of deadweight loss: Something that causes a loss of total surplus, consumer + producer surplus.  Analyzing Positive Externalitites  Using supply and demand, we look at the impact of a positive, or benefit externality on the market.  Analyzing Negative Externalitites  Using supply and demand, we look at the impact of a negative, or cost externality on the market.   
Intro Micro Three: Graphing Producer and Consumer Surplus: Analysis with Supply/DemandDemand CS PS A  This was my very first video. Note the horrible drawing program! Graphing demand and supply, calculating Consumer and Producer Surplus, total revenue, total benefit, deadweight loss.  Demand CS PS B  Continuation of Part A above.  Demand CS PS C  More practice graphing and calculating CS PS VC TR TS and TB with equations P=12.5Q and P=2+2Q.  Demand CS PS D1  First half of an analysis of a production quota and deadweight loss.  Demand CS PS D2  Second half of production quota analysis.  Demand CS PS E  Analysis of a price ceiling, calculating CS PS and DWL.  Demand CS PS F  An overview comparison of the results in Videos D1, D2, and E, so that you can see the big picture. The deadweight loss from the price ceiling of 4 is the same as with the production quota of 2.  Demand CS PS G1  Analysis of an Excise Tax: Shift of Demand, Consumer Surplus, Producer Surplus, and Deadweight Loss: Part 1.  Demand CS PS G2  Continuation of Excise Tax example above.  Tax Incidence Again  Another example of analyzing an Excise tax, with focus on Incidence.  Tax Incidence Algebra Style  Someone asked to see the algebra behind tax incidence: Optional but fun.  Marriage Penalty  Since we are talking taxes, here is an example of how the marriage penalty works.
 Marriage Penalty Fairness  Continuing the above video, with a focus on marginal tax rates and ideas of tax fairness.  Review 1  One more set of practice exercises for CS, PS, DWL, etc. In pt. 1 we do a basic situation and ceiling.  Review 2  In part 2 we do a quota and Excise Tax. 
Intro Micro Four: ElasticitiesElasticity A  An introduction to the concept of elasticity, price elasticity of demand.  Elasticity B1  Simple examples calculating and discussing elasticities.  Elasticity B2  More simple examples calculating and discussing elasticities.  Elasticity B3  Another lecture on interpreting price elasticity of demand, income elasticity of demand, and crossprice elasticity of demand. Examples using alcoholic beverages.  Elasticity C
 How to calculate percent changes using the midpoint method for elasticities.  Elasticity D  Elasticities and Total Revenue along a Linear demand function.  Elasticity E  Calculating Point Elasticity of Demand

Intro Micro Five: Basic Utility Theory
Intro Micro Six: Income Inequality and Poverty Lorenz Curves and Gini Coefficients  In this video I introduce the ideas of the Lorenz Curve and Gini Coefficient for measuring income inequality. I also describe some difficulties with using it as a way to track income inequality over time.  Why Incomes Aren't Equal  Some good reasons why some people make more than others, and a look at the "Gender Pay Gap" in the US.  Poverty  How to define poverty, some problems with our methods, who is more likely to be in poverty, and some policies that are proposed to try to alleviate poverty and income inequality. I close with a discussion of the extreme world poverty in many parts of the world.  Discrimination  A brief look at discrimination from an economist's perspective, with a look at some historical examples from 100 years ago to compare with today. Handout 
Intro Micro Seven: Analysis of Cost and Production
Cost and Production Overview  LONG, but comprehensive overview of cost tables, ATC, AVC, MC, break even price, shut down price, and how to maximize profits in pure competition. File: Cost Overview.pdf  Cost and Production 1a  The first video analyzing cost and production: Production function, marginal cost, fixed cost, variable cost, and productivity.    Cost and Production 1b  Second part of lecture 1: Marginal returns versus returns to scale.  Cost and Production 2  Using a total cost table to calculate marginal cost, average total cost, average variable cost, etc. and what these numbers mean.  Cost and Production 3a  An example discussing implicit and explicit costs, and accounting versus economic profit. Part 1.  Cost and Production 3b  Second half of implicit/explicit accounting/ economic.  Cost and Production 4a  Using the Average total cost, average variable cost, and marginal cost curves to make decisions about production and profit or loss. Part 1.  Cost and Production 4b  Part 2 of using ATC and MC, etc.  Cost and Production 5  Looking at how things change in the long run. Also, a brief look at the LRAC, or long run average cost curve as you change the SCALE or size of your business.  Cost and Production 6  In this video we use the marginal cost curve for ONE perfectly competitive firm to derive the Market Supply curve for 100 small firms. *File* Cost and Production.xlsx  Cost and Production 7  Now, we look at how changes to the market such as excise taxes or license fees can affect the market equilibrium.  Cost and Production 8  An introduction to analyzing a monopolist's decisions using supply and demand lines. Marginal cost=Marginal Revenue!  Cost and Production 8b  Some more details about monopoly analysis continuing the previous video.  Cost and Production 9  We look at the same cost table from "Cost and Production 4, 6 and 7", but we look at how we can analyze and estimate the effects of a monopoly takeover in a perfectly competitive market. 
Intro Micro Eight: Game Theory Game Theory A  Simultaneous Games and Nash Equilibria  Game Theory B  Simultaneous Games and Nash Equilibria and Dominant Strategies  Game Theory C  Sequential Games: A quick review of simultaneous games, and a first look at sequential games, backward induction, and subgame perfect equilibria.  Game Theory D  Dating Game: Another example of solving a simultaneous game and its sequential counterpart.  Game Theory E  The Centipede Game! And another large simultaneous/sequential game is analyzed.  Mixed Strategy Nash Equilibria  Advanced Material! How to calculate a mixed strategy Nash Equilibrium for a game with no Pure Strategy Nash Equilibrium.  Evolutionary Stable Strategy (ESS)  Advanced Material: Here I discuss the basic idea used in biology, an Evolutionary Stable Strategy: When is an equilibrium behavior resistant to a mutation or invasion?   

My intermediate microeconomics course uses a LOT of calculus and algebra. Calculus/Math review videos are below!
Intermediate Micro: Math Review
Intermediate Micro Math: Exponents Review 
A quick review of all of the exponents rules, including fractional exponents and negative exponents, and how to simplify them. 
Equations with strange exponents 
Solving equations like x^{0.4} = 10 on your calculator. 
Level Curves (Indifference, IsoQuants...) Curves, … 
How to graph a level curve, or parametric curve. If Q=x*y=4, how do we graph this curve. Useful for isoquants and indifference curves in Intermediate Micro. 
Level Curves Visualization 
More of the above with better visualization, with a at z=4. *FILE LevelCurvesintro.wxm* 
Basic Derivatives & Microeconomics

Here we review derivatives of polynomials, and the interpretation as a slope, or marginal. 
More on Partial Derivatives 
I review the idea of a onevariable derivative again, then discuss partial derivatives in more depth. 


Intermediate Micro: Basic/Review Material
Equilibrium and Comparative Statics: Basics 
Example of calculating equilibrium of Supply and Demand using algebra and graphing, and using "comparative statics": examining what changes when an exogenous variable changes the equilibrium. 
Add Linear Demands 
How to add two linear demand functions together to get a total demand function. 
Adding Nonlinear Demands  Here we add two CobbDouglas Demands and plot them using Maxima *File maxima add cd demands.wxm 
Demand, Marginal Revenue, and Profit 
Another example of looking at demand, along with marginal revenue. How separating markets can increase profits. 

Here I discuss a problem similar to one in Jeffrey Perloff's Text: How
could we model how drilling in ANWR could help keep prices down when a
supply shock happens. 
Elasticity and Tax Incidence 
A brief review of tax incidence, and of how price elasticity of demand and supply can predict the incidence of a per unit tax. 
Demand and Elasticity 1  Given two points on a demand curve, find the equation and calculate elasticities. 
From Elasticities to Linear Supply and Demand 
Here I show how to take price elasticities of supply and demand to derive plausible linear functions to represent them. 
Demand elasticity back of envelope
 Using the price elasticity of demand, price and quantity, we approximate the demand function for Jack Daniels whiskey in Virginia 
Intermediate Micro: Intermediate Surplus and deadweight loss analysis
Cost Functions, Marginal Cost, and Perfect Competition  Here is a basic look at cost functions, and using calculus to figure out how many units a perfectly competitive firm should produce, and its relationship to Producer Surplus. 
Ceiling Worst Case Scenario 
With a price ceiling, what you normally calculate in Introductory Micro is the "Best Case Scenario". Let me show you the Worst Case Scenario, or "Least efficient Outcome". 
Quick Calculus for Economics 1: Derivatives and Integration 
Introduction and integration to find variable costs, total benefit, consumer surplus, and producer surplus. 
Quick Calculus for Economics 2 
Integration to find variable costs, total benefit, consumer surplus, producer surplus, and deadweight loss with a production quota. 


 
Intermediate Micro: Preferences, utility functions, and Indifference Curves
Utility 1 
A look at a total and marginal Utility Function with only one variable.
Using calculus, we look at what a marginal function means. 
Utility 2a *File utility.wxm* 
Visualizing a 3d utility surface, thinking about marginal utility. In
this video we only do visualization so that you can better understand
the calculus that comes next. 
Utility2B: Marginal Utility and MRS 
Using calculus to find marginal utility and marginal rate of
substitution for a utility function, looking at indifference curves. 
Utility2C: MRS for Cobb Douglas 
I show a trick for finding the Marginal Rate of Substitution function if
you have a cobb Douglas utility function. Works for MRTS (marginal
rate of technical substitution) as well. 
Indifference Cures: Different Types 
We look at intuition, graphs, functions of several types of preferences people could have: Cobb Douglas, Quasilinear, perfect complements/substitutes, bads, and goods we could take or leave. 
A few points about Indifference Curves
 Some of the finer points: Why they can't slope upwards (with two GOODS), cross, be thick, there are infinitely many, and a review of MRS. 
Utility3: Maximizing Utility with Budget Constraint 
How to solve a constrained optimization problem with a utility function
and budget constraint; maximizing utility. Just set the slope of the
budget line = slope of indifference curve! 
Quasilinear Utility Maximization 
Instead of the usual CobbDouglas, here I illustrate maximizing utility with a quasilinear utility function. 
Equal MU per $, or Bang for Buck rule 
Graphs, calculus, numbers, and discussion to explore details of the =equal marginal utility per dollar maximization condition. 
Utility Maximization and Demand 
Here we demonstrate how to show where demand curves come from, by doing several utility maximization problems. 
The Dual Problem 
Here we look at the DUAL problem to utility maximization. Instead of
getting the highest utility with a given budget, here we find the
cheapest way to attain a certain level of utility. 
Income and Substitution Effects 
If you already know how to maximize utility, this video shows you how to find income and substitution effects using the Slutsky Equation (Hicks' Decomposition). 
Income/Subs Effects, Price Decrease 
Here we look at a CobbDouglas utility function with a price decrease. 
Overview: Inc/Subs/ Compensating/ Equiv. Variation. 
This is an overview of graphing and interpretation of income and substitution effects, and compensating and equivalent variation. A focus on graphing and interpretation, rather than on calculation. *File* INCSUBS INTERPRET 
Why Subsidies Suck!  Using Consumer Theory to show why subsidies are inefficient. *File* Subsidies Suck.pdf  Yet Another Example  Utility Maximization, Price Change, Income and Substitution Effects, and Compensating Variation file: income.subs.another.example.pdf 
Consumer Theory: More Advanced Topics
Cobb Douglas Exponents: Do they have to Sum to 1?  The answer is No, but you CAN represent any CD Utility function with exponents summing to 1: Here's how! 
Lagrange Multiplier Method 
Here is a different, more powerful method many use to solve constrained optimization problems. I show how it is really the same thing, with one twist. 
Handout: Advanced Consumer Theory on One Page 
Here I give an overview of a handout explaining the relationships between Marshallian Demand, Hicksian, Indirect, Expenditure functions, Money Metric Utility, Roy's Identity, Shephard's Lemma, and a couple of other tricks.
*File* consumer theory.pdf 
Advanced Topic: Roy's Identity, Indirect Utility, Hicksian Demand, Expenditure Functions 
Here I use the Lagrange Multiplier method to derive some advanced ideas in Micro using a simpler method than presented in most textbooks. I use Maple to do the math for us, but explain what we are doing as we go, and why.
*File* marshall hicks.mw 
Consumer Theory Expression Simplification 
Response to a Viewer Question about how to simplify the expression for the Expenditure Function in my Consumer Theory handout. The answer is: Find the Common Denominator! 
Advanced consumer theory by hand 1: Marshallian and Indirect

By request: Deriving Marshallian and Indirect utility functions for a CobbDouglas utility function, and then using Roy's Identity. 
Marshallian, Indirect, and Roy's: One more time  Here is another example of taking a CobbDouglas Utility Function, deriving the Marshallian demands, deriving Indirect Utility Functions, and then applying Roy's Identity to get the Marshallian Demands back. 
Advanced Consumer Theory by Hand 2: The Hicksian Demand 
By request: Looking at another part of my Consumer Theory Handout, a viewer asks to see how to set up and solve for Hicksian (Compensated) Demand Functions. 
Slutsky Equation Derivation: Preparing you for the journey  In this video we pull out the "BIG GUNS": If you want to see how you can derive the Slutsky Equation, you need to review some highpowered math: Lagrangians, total differentials, and Cramer's Rule. Here we set the stage for the next video.  Slutsky Equation Derivation: Going through the steps  After you have armed yourself with the mathematical tools in the previous video, you are ready to take on the derivation of the Slutsky Equation. Here we go!  CES Functions: Const. Elasticity of Subs.  An introduction to elasticity of substitution, and everything you could ever want to know about CES functions. Constant Elasticity of Substitution.  CES Utility: Analytical Solution Marshallian  In this video I take a generalized CES Utility function and derive the analytical solutions for the Marshallian Demand Functions.  CES Utility Max Part 2: Indirect Utility  Here we take the Marshallian Demands derived previously, and derive the Indirect Utility Function, completing the earlier video about Analytical CES Utility Analysis  Analytical Consumer Theory: Cobb Douglas and Perfect Complements  No numbers! How to derive demand functions with analytical solutions. I show some common tricks for simplifying complicated expressions.  Analytical Consumer Theory: Cobb Douglas with Subsistence Level:Pt 1  Here we assume that if you don't get at least "d" amount of x, you'll get no utility! How does this affect the demand and indirect utility functions?  Subsistence Part 2: Compensation for Tax  Here we derive the compensating variation for a tax on the Consumer with a necessary Subsistence level for X above.  Elasticity for Marshallian Demand Functions  Here we get analytic solutions for the Marshallian Demands for Cobb Douglas and Perfect Complement Utility Functions (Own Price, Income, and Cross Price) 
Utility Maximization: Other Interesting Cases
Two Period (Intertemporal)  We go through the basic idea of intertemporal utility maximization with two periods. We solve a basic problem with a CobbDouglas Utility function and an interest rate.  Intertemporal: Additional Problems  Here we see how taxes and a forced saving program affect utility and decisions.  Risk Aversion and Expected Utility  An overview of Risk aversion, visualizing gambles, insurance, and ArrowPratt measures of risk aversion.  Principal Agent Problems: Moral Hazard Part 1  We look at a model with the potential for Moral Hazard (Hidden Actions that might hurt the Principal), but first assume that you
can observe the effort of the agent. We solve for the optimal contract in the next video.  Principal Agent Problems: Moral Hazard Part 2  In this video we solve for the optimal contract when effort is unobservable, and take a quick look at a statespace diagram.  Allais' Paradox   Ellsberg Paradox   St. Petersburg Paradox    
Intermediate Micro: Cost Minimization and Production Functions
MRTS and Elasticity of Substitution 
Production functions, noneconomic regions, interpreting marginal rate of technical substitution, perfect substitutes and perfect complements (Leontief production functions), and the elasticity of substitution measure. 
IsoQuants and Returns to Scale 
Here we look at the definition of returns to scale, isoquants, and CobbDouglas Production Functions. As usual, I give you the shortcuts along with the intuition and math. I briefly describe the difference between RTS and marginal returns. 
Production Theory: Cost Min 1 
*File* IM Production Theory Example
Returns to scale, input demand functions, marginal rate of technical substitution, isocosts, isoquants,etc. SR vs. LR cost minimizaion. 
Production Theory: Cost Min 2 
Continuation of above, Returns to scale, input demand functions, marginal rate of technical substitution, isocosts, isoquants,etc. 
A interesting discussion of a boring problem 
Given L, K, and the exponents, solve for the constant. Why would we want to do this? Here are some things to think about.

