AAEC 3315
Agricultural Price Theory
Summer II, 2015
Instructor: Shaikh M Rahman
E-mail: shaikh.m.rahman@ttu.edu
Telephone: (806) 834-0505
Office: 307-A, Ag. Science Building
Office Hours: 11:00 AM – 12:00 PM, MWTRF and by appointment
AAEC 3315
Outline
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Introduction
Demand, Supply, and Equilibrium
The Behavior of Consumer: A Consumer’s Constrained Choice
Demand
Consumer Welfare and Policy Analysis
The Behavior of Firms: Production
The Behavior of Firms: Costs
Competitive Firms and Markets
General Equilibrium and Economic Welfare
Monopoly and Monopsony
Oligopoly and Monopolistic Competition
Factor markets
Uncertainty
AAEC 3315
Expected Learning Outcomes
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Understand basic decision making at the consumer level leading to the
derivation of individual consumer and market demand functions for
commodities;
Understand basic decision making at the producer level leading to the
derivation of individual firm and whole industry supply functions for
outputs, and acquire specific knowledge about how these supply functions
are affected by market, technological, and policy related factors;
Understand the derivation of individual firm and whole industry demand
functions for inputs;
Evaluate the basic functioning and operation of alternative market
structures, and how these structures impact social welfare;
Analyze the real world problems associated with agricultural markets and
agribusiness using microeconomic tools.
AAEC 3315
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Required Text
 Microecinomics: Theory and Application with Calculus, Third
Edition, by Jeffrey M. Perloff, Pearson.
Web Link
 http://www.mypearsonstore.com/bookstore/microeconomicstheory-and-applications-with-calculus-0133423859
 Check Digital and Print Choices
The Learning Process:
Methods of Assessing Learning Outcomes
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Class Attendance and Participation
 Each student is expected to attend every class period, be
prepared to respond to questions in the class, and
summarizing the materials covered in the previous class
and unannounced quizzes when given.
 Students are also encouraged to ask questions related to
the course topics.
 Class attendance will be checked regularly.
 If you miss a class, it is your responsibility to make up
anything missed.
 Absences may be excused only in cases of serious illness
(doctor’s note is required) and complementary academic
activities (advance proof of participation is required).
AAEC 3315
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Quizzes:
 There will be several quizzes throughout the semester.
 Any missed quiz will receive a grade of zero.
 The lowest score of the quizzes will be dropped before taking average
Exams:
 There will be two mid-term exams and a final exam.
 Mid-term exam 1: Thursday, 16 Jul. 2014, 9:00 – 10:00 AM
 Mid-term exam 2: Monday, 27 Jul. 2014, 9:00 – 10:00 AM
 Final Exam: Friday, 07 Aug 2014, 11:00 AM – 1:30 PM
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The exams will include several true/false and multiple choice
questions, short questions, and analytical problems.
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There will be no makeup exam.
Any missed exam will have a grade of zero.
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Methods of Assessing Learning Outcomes
Distribution of Grades
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Quizzes – 25% of the final grade
Exams – 75% of the final grade
 2 mid-terms and a final exam – each worth 25% of the final grade
Class Attendance and Participation
 Students with perfect attendance will receive 4 bonus points
 Students with one unexcused absence will receive 2 bonus points
 Every unexcused absence over two will lower final grade by 2 points
AAEC 3315
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Grading Scale: Final grades will be assigned using
the following scale:
 A
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90-100 %
 B
=
80-89%
 C
=
70-79%
 D
=
60-69%
 F
=
0-59%
AAEC 3315
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Expectations and Suggestions:
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Attend every class, take notes and participate (do not hesitate to
ask questions)
Read the text book
Form a study group -- your fellow students are often the best teachers
Be prepared to respond to questions in class
Be prepared to summarize the materials covered in the previous class
Be prepared for unannounced quizzes when given
Spend approximately 20 hours per week (apart from class hours)
reading and working on homework assignments
Take the exams entirely on your own