# Shorter Intro Micro

**Introductory Micro (Shorter, and mostly older 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 trade-offs illustrated with Budget Lines, showing Opportunity Cost as a Slope.

Marginal Cost -Benefit Decision Making Example Homework Problem, and how to think about this process.

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

Comparative advantage and trade example. Opportunity cost, absolute advantage, gains from trade.

Laissez-Faire and Adam Smith A discussion of Market versus Command Economies, Command-type goods in the US, and Adam Smith.

Circular Flow A brief look at the Circular Flow Diagram

**Intro Micro Two: Graphing Supply and Demand**Supply/Demand Intro 1 What is demand? Demand Schedule?Supply Demand Intro 2 A Focus on Supply and factors that can shift Demand and SupplyEquilibrium and Shifts A graphical look at equilibrium, shortages, surpluses, and shifts in equilibriumSupply/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/Demand**Demand 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: Elasticities**Elasticity 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 cross-price 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 DemandIntro Micro Five: Basic Utility TheoryBudget Lines A focus on Budget Lines, or "Consumption Possibilities Curves"Basic Utility Maximization Looking at marginal utility per dollar to maximize utility. Intro Micro Six: Income Inequality and PovertyLorenz 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 OverviewLONG, 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.pdfCost 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.xlsxCost 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 EquilibriaGame Theory B Simultaneous Games and Nash Equilibria and Dominant StrategiesGame 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?Moral Hazard and Adverse Selection A discussion of Moral Hazard vs. Adverse Selection, using Rasmusen's terminology of "Hidden Action" vs. "Hidden Information"