Mon, Sep-23-2013

Wed, Sep-25-2013

“The Best Care Other People Can Buy”

Podcast Act 2 of This American Life episode #414 http://www.thisamericanlife.org/radio-archives/episode/414/right-to-remain-silent (Act 1 is optional, but a good piece on terrorism)

·         Incentivizing less crime sounds like a good idea. Although the crime incentive program was designed to encourage a reduction in crime, what did the incentives actually discourage? What is the lesson to learn here?

Cowen - Chapter 1 (Big Ideas 1, 3 – 5 only)

·         No questions

Video - http://www.youtube.com/watch?v=_Ij_oLLL7c4

·         Does the driver’s behavior in the video follow what Cowen/Tabarrok describe with Big Idea 4? Explain

·         What is the incentive problem in this case?

“Recycling Gone Bad: When the Option to Recycle Increases Resource Consumption”

·         Why does providing a recycling bin encourage more paper towel consumption?

Fri, Sep-27-2013

Cowen - Chapter 2

·         F&T: 3,6 Challenges: 1,2

Mon, Sep-30-2013

Demick – The Good Cook

Podcast – Planet Money Episode #467 “Tires, Taxes and the Grizz” http://www.npr.org/blogs/money/2013/06/21/194326482/episode-467-tires-taxes-and-the-grizz

·         If the cost of this trade restriction so easily outweighs the benefits and hurts consumers of tires, why aren’t politicians paying attention and rescinding these restrictions? Explain.

·         True or False – If asked, North Koreans would blame the lack of trade (internal and external) for their predicament. Explain

Wed, Oct-2-2013

Cowen - Chapter 3 (the demand part)

·         F&T: 2,3,6 T&PS: 7,9 Challenges: 2a

Demand Problem – Draw demand curves with your own estimated numbers. I offer hints as to what you can put on the axes to limit ambiguity..

A. for bottles of water consumed on campus per day

B. for entrance into the library (price axis: entrance fee / quantity axis: admission per day) based on the SCU student body

C. for yearly library checkout privileges (price:a membership fee / quantity:# student signups) based on the SCU student body

D. for ipad checkouts from the library (price:$/rental / quantity:weekly ipad rentals)

Fri, Oct-4-2013

Video – Johnny Carson and Toilet Paper http://cafehayek.com/2013/08/johnny-carson-moved-the-demand-curve-outward.html

·         Draw a graph showing the market for toilet paper before Johnny Carson made his joke, and then draw what happens on the same graph after he makes his joke. In other words, draw a graph that shows two states of the world – one showing the toilet paper market pre-joke, and one a couple days after.

Sandwich Problem - Consider a market demand curve for sandwiches (per day) of the form: QD= 400 – 50P

A)     Graph this demand curve.

B)      What price could sellers charge to sell exactly 200 sandwiches per day?

C)     What is the total benefit to consumers of these 200 sandwiches?

D)    If sold for the price you found in part b, what is the consumer surplus provided by 200 sandwiches?

E)     Show b, c, and d on your graph

F)      What is the marginal benefit of the 200th sandwich?

Mon, Oct-7-2013

Supply Problems – Draw supply curves

Cowen - Chapter 3 (the supply part)

·         F&T: 11 T&PS: 6,14

A.      That reflect the supply curve of campus parking

B.      For Stadium seats

C.     For rental housing over a long period of time.

Wed, Oct-9-2013

“King of My Castle? Yeah, Right”

·         San Francisco’s rental laws are tough on landlords. How do they affect the supply of rental apartments? Explain, and draw a picture illustrating your explanation.

Fri, Oct-11-2013

Cowen – Chapter 4

·         F&T: 2,5,6,8,9 Challenges: 1,6,7

“A Meter So Expensive, It Creates Parking Spots”

·         Consider a single example block in SF. Draw THREE pre-program supply and demand graphs that show what the problem is on this block – one during periods when not enough spots are available, one when too many spots are available, and one when the price is just about right. Your supply curve ought to look different from ‘normal’ ones.

Mon, Oct-14-2013

Podcast – Kid Rock vs the Scalpers http://www.npr.org/blogs/money/2013/06/25/195641030/episode-468-kid-rock-vs-the-scalpers

·         Graph what is happening in a ticket market where tickets are being “underpriced”. Use a supply and demand diagram, and be careful with the supply curve.

·         Optional – Suppose underpriced tickets only went on sale at showtime, and they were non-transferable (and that was enforced). Use your diagram to show the value of time that people would be willing to waste standing in line for these underpriced tickets.

Wed, Oct-16-2013

Fri, Oct-18-2013

Cowen – Chapter 7

·         F&T: 1,2,4,5,6

Video – Milton Friedman - http://www.youtube.com/watch?v=R5Gppi-O3a8

·         How do prices encourage cooperation?

Video – Mike Munger and corn/soy

http://learnliberty.org/videos/what-do-prices-know-that-you-dont

Teasley - “The role of markets and economics for thinking about how to deal with environmental issues and concerns.”

·         What caused Coke to seek better beverage containers and caused beverage can producers to make lighter AL cans? Why might Teasley’s idea about markets fixing environmental problems fail in some cases?

Mon, Oct-21-2013

Cowen – Chapter 5

1) when demand is high (Friday during rush hour in the rain)

2) when demand is low (warm weather during the morning)

·         F&T: 1,2,7ac,8,11 T&PS: 8,9

Taxi Problem – Ridesharing is good for the environment.  However, SF has laws which make this difficult. Read the following article and answer the following questions: http://www.kqed.org/news/story/2012/11/08/110777/sf_street_fight_rideshare_startups_battling_taxis_regulators?category=economy

A.      To drive a taxi in SF, you need a taxi medallion (see the Wikipedia entry for a description of medallions http://en.wikipedia.org/wiki/Taxicabs_of_the_United_States). Given the limit of 1,535 medallions, draw the supply curve for taxi service in San Francisco. Use trips (per hour) as your simplified quantity, and don’t worry about how many medallions actually exist.

B.      Demand fluctuates based on weather and time of the day, etc. For simplicity, assume taxi fares are fixed by law at $5 / trip. Using this information, what would you predict would happen to people hailing cabs and to cab drivers seeking riders

3) when demand is “just right.”

Draw these 3 different demand scenarios on your graph from part a.

C.      The article mentions that these new companies want to enter the market for transportation services. What does that say about the profitability of existing firms in the industry? And therefore, which scenario above (i, ii or iii) is likely to prevail more often during the week?

D.     Suppose the CPUC were considering two options to deal with the taxi shortage. In one case, the CPUC would predict demand the day before, and then issue temporary permits to operate additional taxis for that day. Or, the CPUC could simply allow these new startup companies to operate without medallions at all, reacting to demand and providing service whenever they saw fit. Which choice is more likely to serve consumers better? I.E. which method is more likely to provide the efficient amount of taxis on the street at a given time? (Think about the profit signal, how it varies over time, and who (the regulator or the driver) has the greatest incentive to predict correctly). Explain.

Wed, Oct-23-2013

Cowen – Chapter 6

·         F&T: 2,3,6 (also calculate the DWL from part c) T&PS: 2,3 Challenges: 1

Gasoline Problem – Last year consumers of gasoline in the U.S. spent 100 million dollars per year on gasoline. The retail price (which includes the taxes) of gasoline was $1.20. Assume there was a $0.10/gallon Federal excise tax and an average $0.15/gallon State excise tax.

A.      How much did the Federal government collect in taxes?

B.      How much did State governments collect in taxes?

Economists believe that the elasticity of demand is -.5. Suppose the Federal government is considering raising their excise tax $0.40 from $0.10/gallon to $0.50/gallon. Assume the supply of gasoline is horizontal (perfectly elastic). If the federal government raises the federal gas tax by $.40,

C.      How much will the Federal government collect in taxes after the tax increase?

D.     How much will the State governments collect in taxes after the tax increase?

You need to calculate what the new quantity demanded will be given this tax change – draw a graph to help.

Fri, Oct-25-2013

“Effects of Repeal of the Federal Luxury Tax on Boats”

“25 years later, VTA light rail among the nation's worst”

·         The burden of this tax falls unequally onto producers rather than boat consumers. Illustrate this story using a supply and demand graph of the market for luxury boats, and show how a tax on boat producers falls almost entirely on producers. Assume that a 10% tax can be thought of as a parallel shift in the supply curve.

·         Draw the demand curve for a typical San Jose State University student for rides on VTA’s light rail line. Illustrate the current price and quantity (trips per month) that they use, and estimate the consumer surplus gained from having access to free rides (you will have to estimate).

Podcast – Planet Money Cotton Wars http://www.npr.org/blogs/money/2013/05/03/180912847/episode-224-the-cotton-wars

·         What is the rationale for subsidizing American cotton? What is the rationale for subsidizing Brazilian cotton? Is this good policy?

Mon, Oct-28-2013

Cowen – Chapter 8 (price ceilings section)

·         F&T: 3,5 T&PS: 1,5,9,10 Challenges: 1

“Rich Families Hiring Tour Guides With Disabilities So They Can Skip Long Lines At Disney World”

·         How is Disney’s ride pricing like a price ceiling? Draw a supply and demand graph for the market for rides (rides per hour might be a good unit choice) once people enter Disney World, and identify Disney’s pricing behavior on your graph. Identify the maximum amount consumers would be willing to pay for these guides based on your graph (you will have to estimate).

Podcast – EconTalk with Mike Munger and Russ Roberts http://www.econtalk.org/archives/2007/01/munger_on_price_1.html

·         Using supply and demand graphs, explain what happened in the market for ice after the hurricane. Use the ice price numbers given in the podcast.

Wed, Oct-30-2013

Midterm

Fri, Nov-1-2013

Cowen – Chapter 8 (price floors section)

·         T&PS: 11,12,15,17 Challenges: 2,7

Video – Walter Williams Good Intentions http://www.youtube.com/watch?v=7DS0XXFdyfI (focus on minimum wage material in the first 3 minutes, but the rest is also important)

·         Besides financial compensation, how are employees paid?

Mon, Nov-4-2013

Cowen – Chapter 10

·         F&T: 1,3,4,7,9 T&PS: 3 Challenges: 3

“ Collapse of a Closed Society” – Read footnote 17 on page 15 and the associated text on pages 14 and 15.

·         As opposed to what happened in East Germany, how would Western Germans (or anyone using a price system) deal with this ‘crisis’?·         The article mentions the following joke: “Warum wird der DDR-Kaffee "Rondo" mit einer Neutronenbomhe verglichen ? ~~ Der Mensch stirbt; die Tasse bleibt heil.” Translation: “Why is GDR coffee “Rondo” like a Neutron bomb? The people die but the cup remains.” Is this type of coffee (bad coffee) an expected result of a price ceiling?

Video - http://www.youtube.com/watch?v=PF-NIIXDffE - 45 sec video on gas shortages

Wed, Nov-6-2013

Video – Mike Munger and Potato Chips

http://learnliberty.org/videos/externalities-when-is-a-potato-chip-not-just-a-potato-chip

Fri, Nov-8-2013

Read - Cost of Driving (Intro through page 12 of the article -pages 7 through 15 of the pdf)

Summarize the efficiency argument that this article is making. In other words, what is the main problem they worried about?

Mon, Nov-11-2013

1.       A river flows from Upstream City to Downstream City. No other cities are located on the river. Both cities obtain their water supply from the river. If Upstream City dumps its wastewater into the river, it imposes damages of $30 million on Downstream City, which must clean up the river water before using it. To eliminate these damages, Upstream City could treat its wastewater at a cost of $25 million. In the absence of any water treatment costs, each city has an income of $500 million.

a.       From an efficiency standpoint, which city should clean up the water?

b.       Under each of the following assignments of liability (property rights), which city will end up doing the clean-up, and what payments between the cities will take place (if any)? Is efficiency affected by the assignment of liability? You may assume there are no transaction or negotiation costs.

                                                               i.      Upstream City is liable for damages.

                                                              ii.      Upstream City is not liable for damages.

c.        Answer part (b), but now assume that the cost of negotiating between the cities is a total of $10 million. (Note that obtaining a court judgment for payment of damages is not subject to the negotiation cost.)

2.      For this problem, I do not need your graph to be turned in, but you should complete it. ***A farmer grazes cows on Bureau of Land Management (BLM) land outside of Sacramento CA. He pays a fee per cow of $5/day to the BLM. In addition, it costs him an additional $2 per day for feed for each cow above 25 and an additional $3 per day for each cow above 45 (so cows 25-45 cost the farmer $7 per day and cows 45-50 cost the farmer a total of $8 per day).

Externalities:

a.       Graph the farmers private marginal cost for grazing 0 to 50 cows (the BLM limits the possible total to 50)

b.       What is the total cost of grazing 30 cows? Show your answer graphically.

c.        The marginal benefit per day of a grazing cow is constant at $8.5. Draw the marginal benefit curve on the same graph.

d.       How many cows is the farmer likely to send out on the fields to graze?

e.        At the equilibrium number of cows,

                                                   i.      What are the total benefits from grazing?

                                                  ii.      What are the total costs of grazing?

                                                iii.      What are the net benefits (benefits minus costs)?

When more than 25 cows are grazing, they get hungry and thirsty (despite the extra feed) and ford the Cosumnes River and graze on the Retreat Center’s lawn. Rancho Cicada Retreat hosts nice weddings on the lawn near the river, which is a problem when the cows shit on it. Each cow leaves one pile that the Retreat’s owner must clean up. The owner dislikes this, and must hire the neighbor's kid and pay him $1 for each pile cleaned up. This is an external cost of grazing inflicted upon the Retreat owner. We will ignore the carbon emission externality from cow farts.

f.        Draw the Social Marginal Cost curve on your graph (the sum of the private and external marginal costs).

g.        Given the number of cows grazing found above,

                                                   i.      what are the total benefits from grazing at this equilibrium?

                                                  ii.      What are the total costs of grazing?

                                                iii.      What are the net benefits (benefits minus costs)?

h.       What is the efficient number of grazing cows per day given the externality?

i.         What are the net benefits at the efficient level of grazing cows?

j.         What is the deadweight loss associated with grazing the number of cows found above?

k.       What is the deadweight loss of grazing the 50th cow, if anything?

Property Rights and Distributional Effects – Assume negotiation is easy between these two people

l.         If the rancher were not liable for any grazing damages from his animals, how many cows would he graze?

m.     If the Rancho Cicada owner instead had the right to a clean field (no poop), how many cows would the rancher send out?

Wed, Nov-13-2013

“How Costco Became the Anti-Wal-Mart”

Cowen – Chapter 11 (first half)

·         F&T: 1,7,9 T&PS: 1,4,7,10,12 Challenges: 2,5

·         Suppose Costco drives WalMart out of business. Is that a problem?

Fri, Nov-15-2013

Cowen – Chapter 11 (second half - entry/exit and average costs)

NOTE to self- some problems from last HW are more apt for this HW

Mon, Nov-18-2013

“In Manhattan Pizza War, Price of Slice Keeps Dropping”

·         If one of these restaurants drives the other out of business, is that a problem? Justify your answer.

Podcast – Planet Money – Marijuana Arbitrage - http://www.npr.org/blogs/money/2013/05/07/182010027/episode-456-marijuana-arbitrage

·         Why is the marijuana dealer (Jim) well compensated? What specific talent does he bring to the market? Why didn’t others see this profit opportunity and enter this business?

Wed, Nov-20-2013

Why won’t this change affect the MC curve?

Cowen – Chapter 13

·         F&T: 1,7,8,10a-c T&PS: 3,4

Note - the following problem was not assigned - instead, the taxi problem done in class was assigned.

Industry Supply Problem – The graph (see link below) shows a representative competitive firm in the meat production industry. The industry is in equilibrium at a price p**. Each individual firm produces q**, a fraction of the total industry output Q**. Congress proposes a new law that will require each firm to obtain a license that costs $50,000.

https://docs.google.com/drawings/d/1YOo_S9p1SgsjNBezdHlLvEzSgoi_20T9p857ruelZ7Y/edit?usp=sharing

·         Redraw this graph (approximate shape is fine) and show the effect on the graph of this proposed license fee.

·         What will be the effect of this license on the quantity produced by each firm in the long run (q**) and the price in the industry? Show the effect on the graph and explain the process which leads to this result. It may help to draw a new graph below and explain the process in steps.

Fri, Nov-22-2013

“It's Illegal for Monks to Sell Caskets In Louisiana”·         If you think the state’s regulatory power over funeral caskets is unreasonable, give an example of another business that has a monopoly that they do not deserve. If you think the state’s regulatory power over funeral caskets is reasonable, give an example of an area that the state should regulate that they currently do not.

Podcast – Planet Money – How to spend $442 on a 15-minute cab ride http://www.npr.org/blogs/money/2013/07/09/199048226/how-to-spend-442-on-a-15-minute-cab-ride

·         What is the tradeoff to this regulation of fares? How does this regulation interfere with the allocation of resources?

Mon, Nov-25-2013

Thanksgiving

Wed, Nov-27-2013

Thanksgiving

Fri, Nov-29-2013

Thanksgiving

Mon, Dec-2-2013

Cowen – Chapter 23

·         F&T: 5,6 Challenges: 3ab,4

Monopoly Graph Problem (link below) – Consider a monopolist facing the following demand, marginal revenue and marginal cost curves. The monopolist chooses the price that maximizes its profits.

https://docs.google.com/drawings/d/15KJjNFcBaZ80UoWUjUJlZbrq8fHulydfIdG6y9cKzeE/edit?usp=sharing

A.      What price does it choose?

B.      How much output does it produce and sell?

C.      What is the marginal cost of additional output at this level of output? Note that price exceeds marginal cost.

Cost Curves and Competition

A producer of high-end stereo speakers has fixed (overhead) costs of $1200 per month

Q - Variable Cost - Marginal Cost - Average Cost1 - 6002 - 15003 - 27004 - 42005 - 60006 - 8100

a.       Fill in the blank columns of the table (marginal and average cost)

b.      If the firm is in a competitive market and faces a market price of $1950 per speaker, approximately how many speakers should it produce per month to maximize profit? If possible, explain without calculating the actual profit levels at each quantity.

c.       Would you expect this price to be the long-run competitive equilibrium price? If not, explain carefully what you expect to happen in this industry over time.

d.       In the long-run equilibrium, what will be the price? Will there be more firms, the same number, or fewer? Will this firm be producing more, the same, or fewer speakers?

Wed, Dec-4-2013

“Is It Nuts to Give to the Poor Without Strings Attached?”

1. If cash is the best way to help people, why do we have food stamp programs, housing programs, childcare programs, etc.?

Labor Leisure Problem – Suppose a worker is endowed with a maximum of 5840 hours of non-work-non-sleep time per year (call this time "leisure time"). The worker can trade-off leisure for income. The rate of this trade-off is the "wage rate."

A.      Draw the yearly budget constraint for the worker (between leisure and income) if the wage rate is $20/hour.

B.      Suppose, at a wage rate of $20/hour, the worker chooses to spend 2250 hours/year working. Draw this choice using indifference curves and the budget constraint you drew above.

C.      Now suppose the worker's employer offers the worker $16/hour for the first 1125 hours per year, and $24/hour for each additional hour (time-and-a-half for overtime). Which payment scheme would the worker prefer, and how would the payment scheme affect the number of hours the worker chooses to work? Draw the new budget constraint carefully to help you answer this question.

1.       Externality Question (review)

Consider a competitive industry in which the production process creates pollution as an externality. Assume that the quantity demanded of the good is given by: P = 1600-20Q, where Q is quantity and P is price. The marginal private cost of production (the supply curve) is constant at $100 (i.e., a flat marginal private cost curve.) The marginal pollution cost rises with the quantity produced, and is given by: MCpollution=10*Q. This curve reflects the amount of the externality inflicted on third parties at different levels of output.

a)       Graph the demand curve and the private cost curve. What is the equilibrium quantity under competition (when firms are ignoring externalities)?

b)      At the competitive equilibrium, what are the marginal private and marginal pollution costs of production?

c)       At the competitive equilibrium, what is the marginal social cost of production? What is the marginal benefit?

d)      Using your answers from part C, what is the marginal deadweight loss?

e)       Draw the marginal pollution cost curve on your graph, and use it to construct and draw the social cost of supply. What is the efficient output?

f)        Graphically show the deadweight loss that occurs as a result of firms ignoring their external cost.

g)       If legislators were interested in achieving the efficient output by using a tax, what tax rate would they place on the good?

Fri, Dec-6-2013cigarettes are the following, where Q is in millions of cigarettes per day and P is price in dollars per pack: Market Demand for cigarettes: P=24-6Q. Market Supply for cigarettes: P=2Q. For the following questions, show your numerical calculations. You can also draw graphs depicting your answers, if doing so helps you. But your numerical calculations are required.

a.       What are the equilibrium price and quantity of cigarettes sold? Be sure to show your numerical calculations.

b.      What is the consumer surplus? Producer surplus? Show your calculations.

c.        Now suppose that the Federal government places an $8 excise tax on cigarettes. What is the deadweight loss from the tax? Show your calculations.

d.       Calculate the new consumer and producer surplus and tax revenue. Compare this sum to part b and explain why the difference makes sense.

2. A monopolist is currently producing quantity Q1 in the graph below (see link), and has decided to increase its output to Q2. Show on the graph the extra profits that the firm will make by expanding its output from Q1 to Q2. https://www.dropbox.com/s/rs6m0v4ru5hqy4l/Monopoly_question_Reference.png

3.       This is a true story. In 1960’s, the price of beef skyrocketed. The federal government responded to the high prices by placing price controls on the wholesale price of beef, that is, on the price that beef producers charge grocery stores. The government did not place controls on the retail price of beef, that is, on the price that grocery stores charge consumers.

a.        Using a supply and demand diagram for wholesale beef, show what happens to the price and quantity of beef sold, assuming that the controls effectively lowered the price (no black markets arose and the quality remained constant).

b.       Use a separate supply and demand diagram for retail beef sold to consumers. How would the result in part a affect the market for retail beef?

4.      A monopolist has a demand curve P=100-Q and a marginal cost of production MC=$10.

a.       Graph the demand curve, marginal revenue curve, and marginal cost.

b.      Identify the profit maximizing output numerically and show it on the graph.

c.       The monopoly has a fixed cost of production equal to $1025. Use this to graph the average cost curve. Hint: Average Cost = (Fixed Cost + Variable Cost)/Q

d.      Calculate the profit that the monopolist earns.

e.       Show the profit on the graph.

f.       Show the consumer surplus on the graph and calculate it.5         There are three industrial firms (A, B and C) in Smiley Town, with the following profiles: Firm A pollutes 70 units and has a marginal abatement cost of $20, Firm B pollutes 80 units and has a marginal abatement cost of $25 and Firm C pollutes 50 units and has a marginal abatement cost of $10. The people want to reduce pollution in Smiley Town to 120 units (thus abating 80), so they direct the EPA to give each firm 40 tradable pollution permits.

a)       What is the equilibrium permit price? (Hint: find the only price at which there can be equilibrium (quantity supplied equals quantity demanded).b)      Who sells permits and how many do they sell?c)       Who buys permits and how many do they buy?d)      What is the abatement cost of achieving 80 units of abatement?

e)       If instead of using a tradable permit system (cap and trade system), the people wanted to tax these firms, what tax per unit would achieve the same level of abatement?

Cowen – Chapter 18

F&T: 3,5 T&PS: 1,2,6 Challenges: 2

Podcast – EconTalk with Bruce Yandle - http://www.econtalk.org/archives/2007/10/yandle_on_the_t.html

·         Read Genesis 29:3 and comment on how some cultures solved groundwater collective action problems. What is a collective action problem? How did this method solve it?

Date

Monday, September 23, 2013 Mon, Sep-23-2013Wednesday, September 25, 2013 Wed, Sep-25-2013

Friday, September 27, 2013 Fri, Sep-27-2013Monday, September 30, 2013 Mon, Sep-30-2013Wednesday, October 2, 2013 Wed, Oct-2-2013

Friday, October 4, 2013 Fri, Oct-4-2013Monday, October 7, 2013 Mon, Oct-7-2013

Wednesday, October 9, 2013 Wed, Oct-9-2013Friday, October 11, 2013 Fri, Oct-11-2013

Monday, October 14, 2013 Mon, Oct-14-2013Wednesday, October 16, 2013 Wed, Oct-16-2013

Friday, October 18, 2013 Fri, Oct-18-2013Monday, October 21, 2013 Mon, Oct-21-2013

Wednesday, October 23, 2013 Wed, Oct-23-2013Friday, October 25, 2013 Fri, Oct-25-2013

Monday, October 28, 2013 Mon, Oct-28-2013Wednesday, October 30, 2013 Wed, Oct-30-2013

Friday, November 1, 2013 Fri, Nov-1-2013Monday, November 4, 2013 Mon, Nov-4-2013

Wednesday, November 6, 2013 Wed, Nov-6-2013Friday, November 8, 2013 Fri, Nov-8-2013

Monday, November 11, 2013 Mon, Nov-11-2013Wednesday, November 13, 2013 Wed, Nov-13-2013

Friday, November 15, 2013 Fri, Nov-15-2013Monday, November 18, 2013 Mon, Nov-18-2013

Wednesday, November 20, 2013 Wed, Nov-20-2013Friday, November 22, 2013 Fri, Nov-22-2013

Monday, November 25, 2013 Mon, Nov-25-2013Wednesday, November 27, 2013 Wed, Nov-27-2013

Friday, November 29, 2013 Fri, Nov-29-2013Monday, December 2, 2013 Mon, Dec-2-2013

Wednesday, December 4, 2013 Wed, Dec-4-2013Friday, December 6, 2013 Fri, Dec-6-2013

Day Date Topics Textbook Readings (Fi

M 9/23/2013 Incentives and Opportunity Cost Ch 1

W 9/25/2013 Trade Ch 2 (Ch 8)

F 9/27/2013 Trade - Jobs - DiscussionM 9/30/2013 Demand Ch 3 (Ch 2)-demand section

W 10/2/2013 Consumer SurplusF 10/4/2013 Supply Ch 3 (Ch 2)-supply section

M 10/7/2013 Producer SurplusW 10/9/2013 Equilibrium Ch 4 (Ch 3)

F 10/11/2013 Equilibrium - ExperimentM 10/14/2013 Price Signals Ch 7 (Ch 5)W 10/16/2013 Buffer - ReviewF 10/18/2013 MidtermM 10/21/2013 Elasticity Ch 5 (Ch 4)

W 10/23/2013 Taxes/Subsidies Ch 6 (Ch 7 second part)

F 10/25/2013 Taxes/Subsidies

M 10/28/2013 Price Ceilings - Ice Ch 8 (Ch 6/Ch 7 first part)

W 10/30/2013 Price Floors - Minimum Wage/Rent Control

F 11/1/2013 Externalities Ch 10 (Ch 9)

M 11/4/2013 Coase Theorem

W 11/6/2013 Externality Policies - Cap/Trade and TaxesF 11/8/2013 Firm Behavior Ch 11 (Ch 10)-first half

M 11/11/2013 Entry and Exit Ch 11(Ch 10)-second half

W 11/13/2013 Industry Supply CurvesF 11/15/2013 Monopoly Ch 13 (Ch 11)

M 11/18/2013 Monopoly contd.W 11/20/2013F 11/22/2013 Consumer Choice Ch 23 (doesn’t exist – see online

M 12/2/2013 Indifference Curves - Budget ConstraintsW 12/4/2013 Public Goods Ch 18 (Ch 17)

F 12/6/2013 REVIEW

3:30 1 12/9/2013 Exam 6:30-9:30 pm2:15 1 12/13/2013 Exam 1:30-4:30

Incentives Ch 21 (Ch 15)Price Discrimination Ch 14 (Ch 12)

Homework

F&T: 3,6 CH: 1,2

F&T: 2,3,6 T&PS: 7,9 CH: 2a

F&T: 11 T&PS: 6,14

F&T: 2,5,6,8,9 CH: 1,6,7

F&T: 1,2,4,5,6

F&T: 1,2,7ac,8,11 T&PS: 8,9

F&T: 2,3,6 (also calculate the DWL from part c) T&PS: 2,3 CH: 1

F&T: 3,5 T&PS: 1,5,9,10 CH: 1

T&PS: 11,12,15,17 CH: 2,7

F&T: 1,3,4,7,9 T&PS: 3 CH: 3

F&T: 1,7,9 T&PS: 1,4,7,10,12 CH: 2,5

F&T: 1,7,8,10a-c T&PS: 3,4

F&T: 5,6 CH: 3ab,4

F&T: 3,5 T&PS: 1,2,6 CH: 2