Principles of Microeconomics -- ECON 201

Fall 2019
Classes: M and W 10:00 –11:50 a.m. in GHALL 219

Instructor: Irina Murtazashvili TA: Yin Zhang

This syllabus is subject to change. Changes will be announced in class, by e-mail or on the
Blackboard Learn page for the class. Students are responsible for all the announcements whether
they are present in class or not. Check your Drexel e-mail and the Blackboard page regularly.

Email
Email is my preferred means of communication. However, please note that I have a 24-hour
business day email response policy. If you want to contact me with questions, concerns, to request
an appointment, etc., send me an email at [email protected].

Textbook: Principles of Microeconomics, 7th edition by Robert H. Frank, Ben S. Bernanke, Kate
Antonovics, and Ori Heffetz

This book is available from the Drexel bookstore, but you should also be able to find it online,
potentially for a much lower price. There exist several editions of this text and several versions,
including loose-leaf, softcover, etc. You are welcome to purchase the 6th edition. If you choose to
purchase an edition other than the 7th, I will not be able to give you exact guidance in terms of what
you should be reading for the class and it will be your responsibility to figure this out as well as to
complete the necessary homework problems.

Course Description
Economics 201 is an introduction to microeconomics, the study of how individuals make decisions
in a world characterized by scarce resources and necessary tradeoffs, and how these decisions in
turn impact society. Microeconomics thus provides an invaluable conceptual framework for
understanding a vast array of behaviors and thinking about the associated issues which society
must confront.
Whether you go on to become an economist or whether this is the only economics course that you
will ever take, your fundamental goal in this class should be to become comfortable applying this
conceptual framework in your thinking about the world around you and thereby become better-
informed citizens.

Grading
3 Problem Sets 15%, 3 Quizzes 9%, Midterm Exams (Tentatively October 16th and November 13th)
25% each, Final Exam (TBA) 26%.

[100; …) = A+; [93; 100) = A; [90;93) = A-; [88;90) = B+; [83;88) = B, and so on.

Problem Sets
Throughout the quarter, I will assign (tentatively) 3 problem sets. Problem sets must be turned
in at the beginning of class on the day that they are due. Late homework will not be accepted.

1
Exams
There will be three exams. The two midterm exams will be shorter and might take half the class
period. A longer final will occur during the finals week, as per the University’s final exam schedule
(TBA). Though none of the exams will be explicitly cumulative, the material naturally builds on
itself. Therefore, mastery of the previous material will be important for subsequent exams.
There will be no make-up exams. If you miss an exam for acceptable reasons as defined by the
University1, at the discretion of the instructor, the student will either take a make-up exam or
increase the weighting of the other exam. If you must miss an exam, it is your responsibility to
notify me by email of your absence prior to the exam and to provide me with written
documentation of an excuse meeting University guidelines. Failure to do so will result in a zero for
the exam.

Course Add/Drop/Withdrawal Policies:
Please refer to the following University policies regarding adding, dropping, and withdrawing from
courses:
http://drexel.edu/drexelcentral/courses/adjustments/Adding%20and%20Dropping%20C
ourses/
http://drexel.edu/drexelcentral/registration/courses/course-withdraw/

Special Accommodations
Students requesting accommodations due to a disability at Drexel University need to request a
current Accommodations Verification Letter (AVL) in the ClockWork database before
accommodations can be made. These requests are received by Disability Resources (DR), who then
issues the AVL to the appropriate contacts. For additional information, visit the DR website
at drexel.edu/oed/disabilityResources/overview/, or contact DR for more information by phone at
215.895.1401, or by email at [email protected].

Academic Honesty
In order to protect and maintain a superior learning environment at LeBow College of Business, this
course adheres to the University's Academic Honesty Policy. All students are expected to review
and abide by these policies. For details, see Student Conduct & Community Standards in the
University’s Student Handbook:
http://drexel.edu/studentaffairs/community_standards/studentHandbook/. Specifically, note that
forms of academic dishonesty include plagiarism, fabrication, cheating, and academic misconduct.
Students are responsible for the authenticity of material submitted both for individual and group
work. Any issues will be addressed in accordance with University procedures.

Tentative Course Outline and Reading List:
(Note: Items marked with an asterisk * are optional but highly recommended)

Week 1: Thinking Like an Economist.
Assignment:
§ Read over the syllabus to this course.
§ Read Chapter 1, including the Appendix.

1
The University’s policies on absences can be found at http://www.drexel.edu/provost/policyweb/absence.html.
Acceptable reasons include emergency or severe illness, death of an immediate family member, or observance of a
University-recognized religious holiday, but do not include mild colds or pre-planned travel. Other unusual
circumstances may be considered but must be discussed with me with suitable advance notice.

2
 Main Topics:
§ Scarcity Principle
§ Cost-Benefit Principle
§ Opportunity Cost
§ Marginal Benefit/Marginal Cost
§ Sunk Costs
§ Rational Behavior

Week 2: Comparative Advantage.
Assignment:
§ Read Chapter 2.

Main Topics:
§ Absolute and Comparative Advantage
§ The Production Possibilities Curve
§ Increasing Opportunity Costs

Week 3: Supply and Demand.
Assignment:
§ Read Chapter 3, including the Appendix.

Main Topics:
§ The Supply and Demand Model
§ Market Equilibrium
§ Shifts versus Movements
§ Efficiency and Socially Optimal Allocations

Week 4: Elasticity. Review. Midterm 1.
Assignment:
§ Read Chapter 4.

Main Topics:
§ Demand Elasticities
§ Supply Elasticity
§ Price Changes and Revenues/Expenditures

Week 5: Demand.
Assignment:
§ Read Chapter 5.

Main Topics:
§ Utility and Utility Maximization
§ Law of Diminishing Utility
§ Budget Constraints

Week 6: Perfectly Competitive Supply.
Assignment:
§ Read Chapter 6.

3
 Main Topics:
§ Law of Increasing Opportunity Cost, Revisited
§ Law of Diminishing Returns
§ Perfect Competition (MR = P = MC)
§ Average Total Costs and Average Variable Costs
§ Long-run and Short-run

Week 7: The Invisible Hand in Action.
Assignment:
§ Read Chapter 7.

Main Topics:
§ Profits
§ The Invisible Hand

Week 8: Efficiency and Exchange. Review and Midterm 2.
Assignment:
§ Read Chapter 7.

Main Topics:
§ Deadweight Loss
§ Pareto Efficiency and Equilibrium
§ Price Controls and Subsidies

Week 9: Monopoly, Oligopoly, and Monopolistic Competition.
Assignment:
§ Read Chapter 8.

Main Topics:
§ Returns to Scale
§ Marginal Revenue
§ MR = MC
§ Market Power and Market Structure
§ Price Discrimination

Week 10: Thanksgiving Break!!!

Week 11: Externalities and Property Rights. Review.
Assignment:
§ Read Chapter 11.

Main Topics:
§ Externalities
§ Coase Theorem
§ Taxes/Subsidies

Week 12: Final Exam. Good Luck!!!