$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
INTRODUCTION
TO
MICROECONOMICS
E201
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Dr. David A. Dilts
Department of Economics, School of Business and Management Sciences
Indiana - Purdue University - Fort Wayne
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
May 10, 1995
First Revision July 14, 1995
Second Revision May 5, 1996
Third Revision August 16, 1996
Fourth Revision May 15, 2003
Fifth Revision March 31, 2004
Sixth Revision July 7, 2004
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
,Introduction to Microeconomics, E201
8 Dr. David A. Dilts
All rights reserved. No portion of this book
may be reproduced, transmitted, or stored, by
any process or technique, without the express
written consent of Dr. David A. Dilts
1992, 1993, 1994, 1995 ,1996, 2003 and 2004
Published by Indiana - Purdue University - Fort Wayne
for use in classes offered by the Department of Economics,
School of Business and Management Sciences at I.P.F.W.
by permission of Dr. David A. Dilts
, TABLE OF CONTENTS
Preface.............................................................................................................................. ii
Syllabus............................................................................................................................. iv
I. Lecture Notes
1. Introduction to Economics ...................................................................................... 2
2. Economic Problems................................................................................................ 7
3. Interdependence and the Global Economy ............................................................ 12
4. Supply and Demand ............................................................................................... 18
5. Elasticity ................................................................................................................. 29
6. Consumer Behavior................................................................................................ 33
7. Costs ...................................................................................................................... 37
8. Competition ............................................................................................................ 43
9. Monopoly ................................................................................................................ 50
10. Resource Markets .................................................................................................. 56
11. Wage Determination............................................................................................... 60
12. Epilogue.................................................................................................................. 68
II. Reading Assignments
1. Introduction to Economics ...................................................................................... 71
2. Economic Problems................................................................................................ 87
3. Interdependence and the Global Economy ............................................................ 101
4. Supply and Demand ............................................................................................... 116
5. Elasticity ................................................................................................................. 134
6. Consumer Behavior................................................................................................ 146
7. Costs ...................................................................................................................... 154
8. Competition ............................................................................................................ 165
9. Monopoly ................................................................................................................ 179
10. Resource Markets .................................................................................................. 191
11. Wage Determination............................................................................................... 200
12. Epilogue.................................................................................................................. 217
III. Appendix A
Sample Midterm Examination ........................................................................................... 222
Sample Final Examination................................................................................................. 229
IV. Appendix B
Bibliography, book list ...................................................................................................... 236
i
, PREFACE
This Course Guide was developed in part because of the high cost of college
textbooks, and in part, to help organize students= studying by providing lecture notes.
This Guide was made possible because the administration of IPFW had the foresight to
make the campus= printing services available to duplicate these sorts of materials, and
provide them at cost through the auspices of the University Bookstore in Kettler Hall.
Without the active participation of both the campus duplicating services, and its most
cooperative staff, and the bookstore this would not be available.
The department, school nor the professor make anything whatsoever from this
Guide. In fact, the department=s budget and the professor=s own resources are used in
the writing of the Guide, and the numerous draft copies that are produced in the
revisions of this document. Like the sign in the Mom and Pop bait shop on Big Barbee
Lake says, “This is a non-profit organization, wasn’t planned to be B it just sorta worked
out that way.” Well, actually it was planned to be a non-profit enterprise in this particular
case.
The professor also wishes to acknowledge the fact that several students have
proposed changes, improvements, caught errors, and helped to make this document
more useful as a learning tool. Naturally, any errors of omission or commission are
those of the professor alone.
ii
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
INTRODUCTION
TO
MICROECONOMICS
E201
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Dr. David A. Dilts
Department of Economics, School of Business and Management Sciences
Indiana - Purdue University - Fort Wayne
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
May 10, 1995
First Revision July 14, 1995
Second Revision May 5, 1996
Third Revision August 16, 1996
Fourth Revision May 15, 2003
Fifth Revision March 31, 2004
Sixth Revision July 7, 2004
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
,Introduction to Microeconomics, E201
8 Dr. David A. Dilts
All rights reserved. No portion of this book
may be reproduced, transmitted, or stored, by
any process or technique, without the express
written consent of Dr. David A. Dilts
1992, 1993, 1994, 1995 ,1996, 2003 and 2004
Published by Indiana - Purdue University - Fort Wayne
for use in classes offered by the Department of Economics,
School of Business and Management Sciences at I.P.F.W.
by permission of Dr. David A. Dilts
, TABLE OF CONTENTS
Preface.............................................................................................................................. ii
Syllabus............................................................................................................................. iv
I. Lecture Notes
1. Introduction to Economics ...................................................................................... 2
2. Economic Problems................................................................................................ 7
3. Interdependence and the Global Economy ............................................................ 12
4. Supply and Demand ............................................................................................... 18
5. Elasticity ................................................................................................................. 29
6. Consumer Behavior................................................................................................ 33
7. Costs ...................................................................................................................... 37
8. Competition ............................................................................................................ 43
9. Monopoly ................................................................................................................ 50
10. Resource Markets .................................................................................................. 56
11. Wage Determination............................................................................................... 60
12. Epilogue.................................................................................................................. 68
II. Reading Assignments
1. Introduction to Economics ...................................................................................... 71
2. Economic Problems................................................................................................ 87
3. Interdependence and the Global Economy ............................................................ 101
4. Supply and Demand ............................................................................................... 116
5. Elasticity ................................................................................................................. 134
6. Consumer Behavior................................................................................................ 146
7. Costs ...................................................................................................................... 154
8. Competition ............................................................................................................ 165
9. Monopoly ................................................................................................................ 179
10. Resource Markets .................................................................................................. 191
11. Wage Determination............................................................................................... 200
12. Epilogue.................................................................................................................. 217
III. Appendix A
Sample Midterm Examination ........................................................................................... 222
Sample Final Examination................................................................................................. 229
IV. Appendix B
Bibliography, book list ...................................................................................................... 236
i
, PREFACE
This Course Guide was developed in part because of the high cost of college
textbooks, and in part, to help organize students= studying by providing lecture notes.
This Guide was made possible because the administration of IPFW had the foresight to
make the campus= printing services available to duplicate these sorts of materials, and
provide them at cost through the auspices of the University Bookstore in Kettler Hall.
Without the active participation of both the campus duplicating services, and its most
cooperative staff, and the bookstore this would not be available.
The department, school nor the professor make anything whatsoever from this
Guide. In fact, the department=s budget and the professor=s own resources are used in
the writing of the Guide, and the numerous draft copies that are produced in the
revisions of this document. Like the sign in the Mom and Pop bait shop on Big Barbee
Lake says, “This is a non-profit organization, wasn’t planned to be B it just sorta worked
out that way.” Well, actually it was planned to be a non-profit enterprise in this particular
case.
The professor also wishes to acknowledge the fact that several students have
proposed changes, improvements, caught errors, and helped to make this document
more useful as a learning tool. Naturally, any errors of omission or commission are
those of the professor alone.
ii
