Structure When to sell an asset? -rate-of -return- Arbitrage Taxation of asset returns Depletable resources Financial intermediaries

Structure Rational constrained choice Computing ordinary demands Interior solution内在解) Corner solution(角点解) “Kinky\ solution Example: Choosing taxes

Structure Market supply Short-run- supply and equilibrium Long -run- supply and equilibrium Long -run- implications for taxation Fixed inputs and economic rent(经济租金)

Structure Endowments(禀赋) Budget constraints with endowments Net demands -Price offer curve Example: Labor supply Comparative statics Slutsky equation revisited

Structure Money equivalent of utility gains to trade Consumer's' surplus Changes in consumer's' surplus Compensating and equivalent variations Producer's' surplus

Revealed Preference Analysis Suppose we observe the demands (consumption choices) that a consumer makes for different budgets. This reveals information about the consumer's preferences. We can use this information to

Structure Utility function(效用函数) Definition Monotonic transformation(单调转换) Examples of utility functions and their indifference curves Marginal utility(边际效用) Marginal rate of substitution边际替代率 MRS after monotonic transformation

Structure The cost minimization problem Average costs Returns to scale and total and average costs Short run and long run costs

Structure From Individual to Market Demand Functions Elasticities Revenue and ownprice- elasticity of demand Marginal revenue and price elasticity

Structure Definition Consumption externality Production externality The tragedy of commons