Microeconomics

  1. Consumer Choice Theory
    1. The Concept of Utility
      1. Total Utility and Marginal Utility
        1. Definitions and Calculation
          1. Relationship Between Total and Marginal Utility
          2. The Law of Diminishing Marginal Utility
            1. Statement of the Law
              1. Implications for Consumer Choice
                1. Exceptions to the Law
              2. The Budget Constraint
                1. The Budget Line
                  1. Equation of the Budget Line
                    1. Slope and Intercepts
                      1. Feasible and Infeasible Consumption Bundles
                      2. Effects of Changes in Income
                        1. Parallel Shifts of the Budget Line
                          1. Income Increase
                            1. Income Decrease
                            2. Effects of Changes in Price
                              1. Rotation of the Budget Line
                                1. Price Increase
                                  1. Price Decrease
                                2. Indifference Curves
                                  1. Definition and Properties
                                    1. Downward Slope
                                      1. Convexity to the Origin
                                        1. Non-Intersection
                                          1. Higher Curves Represent Higher Utility
                                          2. Marginal Rate of Substitution
                                            1. Definition and Calculation
                                              1. Relationship to Slope of Indifference Curve
                                                1. Diminishing MRS
                                                2. Special Types of Indifference Curves
                                                  1. Perfect Substitutes
                                                    1. Perfect Complements
                                                      1. Neutral Goods
                                                    2. Consumer Optimization
                                                      1. Finding the Consumer's Optimal Choice
                                                        1. Tangency Condition
                                                          1. Corner Solutions
                                                          2. The Equimarginal Principle
                                                            1. Equalizing Marginal Utility per Dollar
                                                              1. Mathematical Condition for Optimization
                                                              2. Deriving the Demand Curve
                                                                1. Price Changes and Optimal Choices
                                                                  1. Price-Consumption Curve
                                                                2. Income and Substitution Effects
                                                                  1. Decomposing a Price Change
                                                                    1. The Substitution Effect
                                                                      1. Definition and Direction
                                                                      2. The Income Effect
                                                                        1. Definition and Direction
                                                                        2. Application to Normal and Inferior Goods
                                                                          1. Normal Goods
                                                                            1. Inferior Goods
                                                                              1. Giffen Goods

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                                                                          3. Elasticity and Its Applications

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                                                                          5. The Theory of the Firm: Production and Costs