İKT213

School of Economics and Administrative Sciences \ Economics

3

6

Compulsory

English

İKT 103 or 105

Economics

This course teaches how consumers and firms make their economic choices; how equilibrium prices and quantities of goods are determined, and consumer and producer welfare changes, in different market structures; how the general equilibrium of the economy can be calculated, and how some market failures can be addressed.

Intermediate Microeconomics: A Modern Approach by Hal R. Varian and Marc Melitz, Tenth Edition, W.W. Norton, 2024.

To teach the fundamental concepts and theories of microeconomic theory through mathematical methods and graphs.

1. Teaches that the supply and demand curves of economic agents are derived as solutions to their optimization problems.
2. Teaches how to calculate the equilibria of different types of competition.
3. Teaches how the general equilibrium of the economy is reached from the production and consumption choices of economic units.
4. Teaches how market failures can be resolved.

Week 1: Introduction and basic principles
Week 2: Consumer theory: Budget constraint and preferences
Week 3 : Consumer theory: Preferences and utility function
Week 4: Consumer theory: Choice and demand
Week 5: Consumer theory: Slutsky equation and market demand curve
Week 6: Exchange economy, general equilibrium, and efficiency
Week 7: Exchange economy, general equilibrium, and efficiency
Week 8: Producer theory: Technology, profit maximization, cost minimization
Week 9: Producer theory: Cost curves (short and long run), firm supply, industry supply curve
Week 10: General equilibrium (production economy): Perfectly competitive market
Week 11: Market failures and monopoly
Week 12: Market failures and monopoly

• Midterm 40 %
• Final 40 %
• Homeworks 10 %
• Quizzes 10 %