Principles of microeconomics rittenberg

Principles of Microeconomics

By Libby Rittenberg and Timothy Tregarthen

28239-1

Principles of Microeconomics

Libby Rittenberg and Timothy Tregarthen

Published by:

Flat World Knowledge, Inc. One Bridge Street Irvington, NY 10533

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Printed in North America

Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21

Brief Contents

About the Authors Acknowledgments Preface

Economics: The Study of Choice Confronting Scarcity: Choices in Production Demand and Supply Applications of Demand and Supply Elasticity: A Measure of Response Markets, Maximizers, and Efficiency The Analysis of Consumer Choice Production and Cost Competitive Markets for Goods and Services Monopoly The World of Imperfect Competition Wages and Employment in Perfect Competition Interest Rates and the Markets for Capital and Natural Resources Imperfectly Competitive Markets for Factors of Production Public Finance and Public Choice Antitrust Policy and Business Regulation International Trade The Economics of the Environment Inequality, Poverty, and Discrimination Socialist Economies in Transition Appendix A: Graphs in Economics

Index

1

2

4

7Chapter 1

7 8

12 17 21 23

25Chapter 2

25 26 30 40 49 55

57Chapter 3

57 58 65 72 83 88

89Chapter 4

89 90 97

102 107 110

111Chapter 5

111

112 123

Contents

About the Authors

Acknowledgments

Preface

Economics: The Study of Choice

Start Up: Economics in the News Defining Economics The Field of Economics The Economists’ Tool Kit Review and Practice Endnotes

Confronting Scarcity: Choices in Production

Start Up: Tightening Security at the World’s Airports Factors of Production The Production Possibilities Curve Applications of the Production Possibilities Model Review and Practice Endnotes

Demand and Supply

Start Up: Crazy for Coffee Demand Supply Demand, Supply, and Equilibrium Review and Practice Endnotes

Applications of Demand and Supply

Start Up: A Composer Logs On Putting Demand and Supply to Work Government Intervention in Market Prices: Price Floors and Price Ceilings The Market for Health-Care Services Review and Practice Endnotes

Elasticity: A Measure of Response

Start Up: Raise Fares? Lower Fares? What’s a Public Transit Manager To Do? The Price Elasticity of Demand Responsiveness of Demand to Other Factors

127 132 137

139Chapter 6

139 140 149 155 161 165

167Chapter 7

167 168 174 183

192 197

199Chapter 8

199 200 214 219 223

225Chapter 9

225 226 229 239 247 251

253Chapter 10

253 253 258 266 271

275Chapter 11

275

Price Elasticity of Supply Review and Practice Endnotes

Markets, Maximizers, and Efficiency

Start Up: A Drive in the Country The Logic of Maximizing Behavior Maximizing in the Marketplace Market Failure Review And Practice Endnotes