Additional Content

You can find additional content and reference materials for Part I: Competetive Markets below.

Consumer Theory (Lectures 1 and 2)

• Cobb-Douglas Demand Derivations
  • This handout provides step-by-step derivations of the Marshallian (uncompensated) and Hicksian (compensated) demand functions for Cobb-Douglas preferences.

Producer Theory (Lecture 3)

• CES Production Functions
  • This handout derives the cost-minimizing input demands and cost function for a CES production function, and shows how to calculate the elasticity of substitution from the CES parameter.

Competitive Equilibrium (Lecture 4)

• Tax Incidence and Deadweight Loss Derivations
  • This handout derives the formulas for tax incidence on consumers and producers, as well as the deadweight loss from a tax, in a simple supply and demand framework.

Welfare Analysis (Lecture 5)

• Chapter 16, Pyndyck and Rubinfeld, Microeconomics, 9th Edition
  • This chapter from the Pyndyck and Rubinfeld is a good reference in addition to the textbook.