Students will learn the equilibrium behavior of competitive markets.
Then they will learn how to model consumer preferences and consumer choice, which can be used to derive a market demand function.
Then they will learn the theory of production and firm behavior to derive a market supply function. The concept of market equilibrium will be
reinforced with more detailed understanding of demand and supply.
After "partial equilibrium" analysis (characterization of firms' behavior in a single market) the equilibrium analysis will be extended to an
environment in which many markets exist and interact ("general equilibrium"). Students will learn welfare properties of competitive markets
for both partial and general equilibrium. Then they will learn other market structures such as monopoly and oligopoly. They will observe
how industry equilibrium differs from the competitive case for each of these structures. Finally they will learn about factor markets,
externalities and public goods.