Advanced Supply and Demand
Who Pays a Sales Tax? is an
interesting application of basic supply and demand principles. It
emphasizes thinking like an economist and directs attention to the importance of
considering the slopes of the supply and demand curves.
- The Cobweb Model and Inventory-Based
Pricing examines the basis for asserting that the equilibrium
with supply equal to
demand is stable.
Discrimination, which is presented in terms of Why Give Students an Educational Discount?,
analyzes the nature of a market where firms maximize profits by offering
different prices to different customers.
The supply and demand for labor reverse the roles of utility maximizing
behavior and profit maximizing behavior so that utility maximization
explains the supply function and profit maximization explains the demand
Intertemporal Substitution applies
the Two Goods - Two Prices Model to consumption in the present and
consumption in the future. This provides a framework for discussing
interest rates. Incorporating production possibility frontiers extends
the analysis to include the decision to invest in education and the decision to save for
Jack Hirshleifer, Price Theory and Applications.
Hal R. Varian, Microeconomic Analysis.
Hischleifer is a classic intermediate micro text.
Varian will appeal to readers interested in the equations behind the