The market demand for a good describes the quantity demanded at every given price for the entire market. Remember that the entire market is made up of individual buyers with their own demand curves. This means that the market demand is the sum of all of the individual buyer's demand curve. In this video, you can visualize why this is true.

An equilibrium exists in a market when there is no pressure for the market price to change. Learn about what it means for a market equilibrium to exist, and how to identify a market equilibrium in a market model. Created by Sal Khan.

In order for markets to function effectively, property rights must be clear. In this video, we explore the idea of property rights, and why they matter in markets and how they affect individual incentives. We describe some of the conditions that are necessary for a properly and efficiently operating market to exist, including how exclusivity, enforceability, and transferability of property rights are essential for a properly functioning market.

This open education textbook is comprised of two parts: Analytical Methods of Economics and Intermediate Microeconomics. Each part supports courses (ECON 201 & ECON 300) in Haverford College's Economics curriculum.

Use of this work governed by a CC BY-NC license.

The topic of the class is information and contract theory. The purpose is to give an introduction to some of the main subjects in this field: decision making under uncertainty, risk sharing, moral hazard, adverse selection, mechanism design, and incomplete contracting.

This course applies microeconomic theory to analysis of public policy. It builds from the microeconomic model of consumer behavior and extends to operation of single and multiple markets and analysis of why markets sometimes fail. We will study empirical examples to evaluate theory, focusing on the casual effects of policy interventions on economic outcomes. Topics include minimum wages and employment, food stamps and consumer welfare, economics of risk and safety regulation, the value of education, and gains from international trade.
MITx Online Version
This course is part of the Micromaster’s Program in Data, Economics, and Design of Policy through MITx Online. The course is entirely free to audit, though learners have the option to pay a fee, which is based on the learner’s ability to pay, to take the proctored exam, and earn a course certificate. To access the course, create an MITx Online account and enroll in the course 14.003x Microeconomic Theory and Public Policy.

Microeconomics will ground you in - surprise - basic microeconomics-how markets function, how to think about allocating scarce resources among competing uses, what profit maximizing behavior means in industries with different numbers of competitors, how technology and trade reshapes the opportunities people face, and so on. We will apply economic ideas to understand current economic problems, including the housing bubble, the current unemployment situation (particularly for high school gradutes), how Google makes its money and why healthcare costs are rising so fast.

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These Guided Notes are note-taking frameworks for Microeconomics, corresponding to OpenStax Microeconomics 2e (or the corresponding chapters of OpenStax Principles of Economics 2e). They contain the structure for students to actively engage with the material while in lecture or while reading.

The notes were authored by Kevin Cook of Des Moines Area Community College.

Russell Cooper and Andrew John have written an economics text aimed directly at students from its very inception. You're thinking, ”Yeah, sure. I've heard that before.“

This textbook, Microeconomics: Theory Through Applications, centers around student needs and expectations through two premises: … Students are motivated to study economics if they see that it relates to their own lives. … Students learn best from an inductive approach, in which they are first confronted with a problem, and then led through the process of solving that problem.

Many books claim to present economics in a way that is digestible for students; Russell and Andrew have truly created one from scratch. This textbook will assist you in increasing students' economic literacy both by developing their aptitude for economic thinking and by presenting key insights about economics that every educated individual should know.

Minimum efficient scale (MES) is the quantity at which a firm’s long run average total cost curve stops falling, and the size of a firm’s MES relative to the size of the market has a strong influence on market structure— large MES is associated with more concentrated markets.

Another type of price control is a price floor, which is a minimum legal price. A real world example of a price floor is a minimum wage. In this video we explore how a minimum wage might affect a perfectly competitive labor market. Created by Sal Khan.

Models in Microeconomic Theory covers basic models in current microeconomic theory. Part I (Chapters 1-7) presents models of an economic agent, discussing abstract models of preferences, choice, and decision making under uncertainty, before turning to models of the consumer, the producer, and monopoly. Part II (Chapters 8-14) introduces the concept of equilibrium, beginning, unconventionally, with the models of the jungle and an economy with indivisible goods, and continuing with models of an exchange economy, equilibrium with rational expectations, and an economy with asymmetric information. Part III (Chapters 15-16) provides an introduction to game theory, covering strategic and extensive games and the concepts of Nash equilibrium and subgame perfect equilibrium. Part IV (Chapters 17-20) gives a taste of the topics of mechanism design, matching, the axiomatic analysis of economic systems, and social choice.

The book focuses on the concepts of model and equilibrium. It states models and results precisely, and provides proofs for all results. It uses only elementary mathematics (with almost no calculus), although many of the proofs involve sustained logical arguments. It includes about 150 exercises.

With its formal but accessible style, this textbook is designed for undergraduate students of microeconomics at intermediate and advanced levels.

Throughout this book, the pronouns she/her are used.

Learn about the key differences between the two extremes of competition: monopolies and perfect competition.

In this video we explore why it is hard for a monopolistic competitor to make economic profit in the long run. Created by Sal Khan.

A monopolist might be pretty happy about its extraordinary profits, but these come at a cost for society. In this video we explore the welfare implications of a monopoly market. Created by Sal Khan.

A monopolist's marginal revenue curve is always less than its demand curve. We explore why using a numerical example in this video. Created by Sal Khan.

In this video we explore how a monopolist decides on the best quantity to produce and the price to charge for that quantity. Created by Sal Khan.

Price discrimination is charging each consumer their entire willingness to pay. What if a monopolist can charge each buyer their entire willingness to pay? Learn about the effect of perfect price discrimination on output and deadweight loss in this video.