1. Equilibrium and Social Welfare
1.1. Market
1.1.1. Market
1.1.2. Market equilibrium
1.1.3. Welfare economics
1.1.4. Market
1.2. Demand Curves
1.3. Elasticity of Demand
1.4. Supply Curves
1.5. Profit maximization
1.5.1. Marginal Productivity
1.5.2. Marginal cost
1.6. Equilibrium
1.6.1. market
1.6.2. market euilibrium
1.7. Social Efficiency
1.7.1. Social efficiency
1.7.2. Consumer surplus
1.7.3. Producer surplus
1.8. Competitive Equilibrium Maximizes Social Efficiency
1.8.1. First fundamental theorem of welfare economics
1.8.2. Deadweight loss
1.9. Market
2. Definition and Role of Equity
2.1. From Social Efficiency to Social Welfare
2.1.1. Social welfare
2.1.2. Second fundamental theorem of welfare economics
2.1.3. equity–efficiency trade-off
2.2. Horizontal equity vs. Vertical equity
2.2.1. Horizontal equity
2.2.2. Vertical Equity
3. Constrained Utility Maximization
3.1. Utility function
3.2. Constrained utility maximization
3.3. Models
3.4. Preferences and Indifference Curves
3.4.1. Indifference curve
3.4.1.1. 1. Consumers prefer higher indifference curves
3.4.1.2. 2. Indifference curves are always downward sloping
3.4.1.3. 2. Indifference curves are always downward sloping
3.5. Marginal Utility
3.5.1. Marginal Utility
3.5.2. Diminishing marginal utility
3.5.3. Marginal Utility: Graphical Representation
3.5.4. Marginal Rate of Substitution
3.5.4.1. MRS= - MUm/MUc
3.5.5. Marginal Rate of Substitution
3.6. Budget Constraints
3.6.1. Budget constraint
3.6.2. Opportunity cost
3.7. Constrained Choice
3.8. The Effects of Price Changes
3.8.1. Substitution effect
3.8.2. Income Effects
3.8.2.1. Normal goods: Goods for which demand increases as income rises.
3.8.2.2. Inferior goods: Goods for which demand falls as income rises.