Information in Competitive Markets In purely competitive markets all agents are fully informed about traded commodities and other aspects of the market. What about markets for medical services, or insurance, or used cars?

Effects of a Price Change What happens when a commodity's price decreases? Substitution effect(替代效应):the commodity is relatively cheaper, so consumers substitute it for now relatively more expensive other commodities

What Do We Do in This Chapter? We conduct comparative statics analysis of ordinary demand functions -- the study of how ordinary demands

What Are We Doing in this Chapter? We take a further look at the comparative statics of demand function with respect to prices; We divide the changes in demand due to price changes into two effects:

一、经济学的分类 以单个经济单位为考察对象,研究 西微观经济学在价格制度调节下资源如何配置和 收入如何分配的经济学

Duality Given the technology we can obtain the cost function are the cost function contains the same information of the technology (production function)? If the answer is yes, then the cost minimization behavior will indicate the technology of the firm

Contents Inter-temporal preferences Two periods Several periods · Asset market CAPM -APT Complete market Pure arbitrage

CONTENT Wa and demand law From preferences to utility Utility maximization EXpenditure minimization

Preference and Choice Content: Preference and rationality The rule of choice Budget Demand function WAand demanded law

一、劳动供给 1、收入与闲暇 工作的回报：工作的内在满足；薪金 工作的机会成本：在工作过程中所必须放弃的闲暇时间的数量