Essentials of Microeconomics 
  Krister Ahlersten 
           Download free books at 
             Krister Ahlersten
             Microeconomics
                                                Download free ebooks at bookboon.com
                                        2 
             Microeconomics
             © 2008 Krister Ahlersten & Ventus Publishing ApS
             ISBN 978-87-7681-410-6
                                                           Download free ebooks at bookboon.com
                                                 3 
                    Microeconomics                                                                                                     Contents
                    Contents
                    1         Introduction                                                                                         10
                    1.1       Plan                                                                                                 11
                    2         Supply, Demand, and Market Equilibrium                                                               12
                    2.1       Demand                                                                                               12
                    2.1.1     The Demand Curve                                                                                     12
                    2.1.2     When do We Move along the Demand Curve, and When Does It Shift?                                      13
                    2.2       Supply                                                                                               14
                    2.2.1     The Supply Curve                                                                                     14
                    2.3       Equilibrium                                                                                          16
                    2.3.1     How to Find the Equilibrium Point Mathematically                                                     17
                    2.4       Price and Quantity Regulations                                                                       17
                    2.4.1     Minimum Prices                                                                                       17
                    2.4.2     Maximum Prices                                                                                       19
                    2.4.3     Quantity Regulations                                                                                 19
                    3         Consumer Theory                                                                                      21
                    3.1       Baskets of Goods and the Budget Line                                                                 22
                    3.2       Preferences                                                                                          25
                    3.3       Indifference Curves                                                                                  26
                    3.4       Indifference Maps                                                                                    27
                    3.5       The Marginal Rate of Substitution                                                                    28
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