V31.0010 - Intermediate Microeconomics
Spring 2011
Instructor: Ahu Gemici, 19 W.4th St., Room 815
Email: ahu.gemici@nyu.edu
Office Hours: Friday 12:00pm-2:00pm
COURSE DESCRIPTION
The purpose of this course is to introduce the students to microeconomic concepts and
tools by using mathematical and analytical techniques. This class will provide the
students with an analytical framework for solving microeconomic problems. Some of the
topics that will be covered include consumer theory, theory of the firm, market structures,
game theory and strategic behavior, and general equilibrium analysis.
PREREQUISITES
Economic Principles II (V31.0002 or C30.0001) and Calculus I (V63.0121).
ATTENDANCE
Students are expected to attend every class. I will follow the textbook in my lectures, but
I will also digress from the text quite often. In the midterms and the final exam, you will
be tested on the textbook, as well as your lecture notes and the problems that I go over in
the class. Each student is also required to attend one recitation class each week to review
material and problem sets.
GRADING
Course grades will be based on two midterm exams (25% for Midterm I and 30% for
Midterm II), a final exam (30%), and problem sets (15%). No books or notes are
permitted during the exams. All exams must be taken on the date and time prescribed
in the syllabus unless authorized by the instructor in advance. The only exceptions
are personal or medical emergencies, in which case the student must provide a
written excuse signed by a doctor, parent, or university official.
There will be two midterms and a final exam:
 First Midterm Exam: March 3
 Second Midterm Exam: April 5
 Final Exam: TBA
TEXTBOOK
Microeconomics: Theory and Applications with Calculus
by Jeffrey M. Perloff
PROBLEM SETS
There will be 4 problem sets. You will hand them in to your Recitation Instructors at the
beginning of recitation on the assigned due date. The solutions will be discussed in the
recitation of the following week, and will also be posted on the blackboard.
You will receive no credit for your assignment if you hand it in after your Recitation
starts on the due date. There will be no exceptions. However, in order to accommodate
unanticipated events or illness, I will automatically drop one problem set with the
lowest score. Hence, each of the 3 remaining problem sets counts for 5% of your grade.
Due Dates for Problem Sets:
February 4-5: Problem Set I due at the beginning of Recitation
February 18-19: Problem Set II due at the beginning of Recitation
March 25-26: Problem Set III due at the beginning of Recitation
April 22-23: Problem Set IV due at the beginning of Recitation
COURSE OUTLINE
Date
January 20
Topic
Introduction/Review of Tools
January 25
Consumer Theory: Preferences, Utility and
Constrained Choice
Consumer Theory: Preferences, Utility and
Constrained Choice
Theory of Demand and Welfare Analysis
Theory of Demand and Welfare Analysis
Firm’s Problem
Firm’s Problem
NO CLASS
Monopoly and Monopsony, Capturing Surplus
Monopoly and Monopsony, Capturing Surplus
Game Theory
Game Theory
MIDTERM I
Game Theory
Market Structure and Competition
SPRING BREAK
Market Structure and Competition
Market Structure and Competition
Modeling Uncertainty and Attitudes Towards
Risk
Modeling Uncertainty and Attitudes Towards
Risk
MIDTERM II
General Equilibrium Analysis and the Welfare
Theorems
General Equilibrium Analysis and the Welfare
Theorems
Market Failure Externalities and Public Goods
Market Failure: Asymmetric Information
Market Failure: Asymmetric Information
Market Failure: Moral Hazard
Market Failure: Moral Hazard
January 27
February 1
February 3
February 8
February 10
February 15
February 17
February 22
February 24
March 1
March 3
March 8
March 10
March 15-March 21
March 22
March 24
March 29
March 31
April 5
April 7
April 12
April 14
April 19
April 21
April 26
April 28
Chapters
1-2
3
3
4-5
4-5
6-9
6-9
11-12
11-12
14
14
14
14
13
13
16
16
10
10
17
18
18
19
19