Firm Level Economics: Consumer and Producer Behavior

Description

All goods and services are subject to scarcity at some level. Scarcity means that society must develop some allocation mechanism – rules to determine who gets what. Over recorded history, these allocation rules were usually command based – the king or the emperor would decide. In contemporary times, most countries have turned to market based allocation systems. In markets, prices act as rationing devices, encouraging or discouraging production and encouraging or discouraging consumption in such a way as to find an equilibrium allocation of resources. We will construct demand curves to capture consumer behavior and supply curves to capture producer behavior. The resulting equilibrium price “rations” the scarce commodity. Markets are frequent targets of government intervention. This intervention can be direct control of prices or it could be indirect price pressure through the imposition of taxes or subsidies. Both forms of intervention are impacted by elasticity of demand. After this course, you will be able to: • Describe consumer behavior as captured by the demand curve. • Describe producer behavior as captured by the supply curve. • Explain equilibrium in a market. • Explain the impact of taxes and price controls on market equilibrium. • Explain elasticity of demand. • Describe cost theory and how firms optimize given the constraints of their own costs and an exogenously given price. Subtitles available in English 4 weeks, 3-5 hours/week



Have you tried this resource?

Help someone out by sharing your thoughts!

Write a review

Have questions about K-12 education?

Ask our community of thousands of teachers, homeschoolers, and parents! Or see recently-asked questions.

Ask a Question

More Ways to Learn Microeconomics

Free

ECON101: Principles of Microeconomics


College | Online class

Before we dive into the principles of microeconomics, we need to define some of the major ideas that lie at the heart of economics. What, for example, is the economic way of thinking? What do...

Free

Microeconomics: The Power of Markets


College | Online class

We make economics decisions every day: what to buy, whether to work or play, what to study. We respond to markets all the time: prices influence our decisions, markets signal where to put effort,...

Free

ECON201: Intermediate Microeconomics


College | Online class

This course is designed to extend your knowledge of the basic microeconomic principles that will provide the foundation for your future work in economics and give you insight into how economic...

Free

Microeconomics


9th - College | Online class

This tutorial (that only has one video) is an overview of what economics is. In particular it will tell you the difference between microeconomics (the subject you’re in right now) and...

Free
Paid add-ons

Microeconomics: When Markets Fail


High School - College | Online class

Perfect markets achieve efficiency: maximizing total surplus generated. But real markets are imperfect. In this course we will explore a set of market imperfections to understand why they fail and...

Free

Principles of Microeconomics for AP Courses - 2nd Edition


High School | Kindle/ebook, Website, Worksheet/Printable

Principles of Microeconomics for AP® Courses 2e covers the scope and sequence requirements for an Advanced Placement® microeconomics course and is listed on the College Board’s AP® example textbook...

Free

Principles of Microeconomics - 2nd Edition


High School - College | Book, Kindle/ebook, Website, Worksheet/Printable

Principles of Microeconomics 2e covers the scope and sequence of most introductory microeconomics courses. The text includes many current examples, which are handled in a politically equitable way....

Free

The Power of Microeconomics: Economic Principles in the Real World


College | Online class

In this course, you will learn all of the major principles of microeconomics normally taught in a quarter or semester course to college undergraduates or MBA students. Perhaps more importantly, you...

Free

Firm Level Economics: Markets and Allocations


College | Online class

In this class, we will derive equilibrium outcomes across a variety of market structures. We will begin by understanding equilibrium under a market structure called Perfect Competition, a benchmark...


See all resources for Microeconomics

Links to supporting retailers are recognized and built automatically, so we can provide you with truly unbiased listings.
We receive a small share of sales from those links to help us keep this service free for all learners. Thanks for your support!

Frequently Asked Questions

What is Firm Level Economics: Consumer and Producer Behavior by University of Illinois at Urbana-Champaign?

Firm Level Economics: Consumer and Producer Behavior is a learning resource for Microeconomics. It is available in the following format(s): Online class. It is suited for College students.

What grade level is Firm Level Economics: Consumer and Producer Behavior by University of Illinois at Urbana-Champaign appropriate for?

It is designed for College students, but could be useful for students of other ages as well; please look at the description and images to determine suitability.

How much does Firm Level Economics: Consumer and Producer Behavior by University of Illinois at Urbana-Champaign cost?

It is free!