The EconModel program by William R. Parke provides an interactive, graphical presentation of economic models. The download instructions and subscription information are available on this web site. (Look for "Getting Started.")
Introduction to Economic Analysis by R. Preston McAfee is a free microeconomics text available at www.introecon.com. This text emphasizes a calculus-based approach to microeconomic theory with an added selection of interesting topics not normally included in an intermediate micro text.
The links on this page show how a reader of Introduction to Economic Analysis (hereafter IEA)might make use of the EconModel applications known as the Classic Economic Models. All links on this page open in new windows so that you can easily get back to this page.
Supply and Demand
Basic Supply and Demand parallels elements of IEA 2 Supply and Demand. The Cobweb Model and Inventory-Based Pricing, which presents material not in IEA, examines the basis for asserting that the supply and demand equilibrium is stable.
The U.S. Economy
Perfect Competition presents a graphical treatment of IEA 4.1 The Competitive Firm and IEA 4.2 Perfect Competition Dynamics fromthe point of view of maximizing profit with respect to the quantity of output. The Demand for Labor looks at profit maximization from the point of view of IEA 4.1.3 Profit Maximization where the focus is on choosing the quantity of the labor input.
Fixed Income Securities: Mortgage/Bond Calculator lets you actually do some of the calculations described in IEA 4.3.1 Present Value and IEA 4.3.2 Investment. Growth Investments: Present Value Calculator adds a topic not in IEA, which is the present value calculations for income streams such as corporate dividends, corporate profits, and personal income that grow over time.
Two Goods - Two Prices presents IEA 5.1 Utility Maximization. Labor Supply, Income Taxes, and Transfer Payments presents a graphical version of IEA 5.2.2 Labor Supply and extends the discussion to the effects on labor supply of income taxes and transfer payments. (The extension would belong in IEA 6 Market Imperfections.)
Intertemporal Substitution covers IEA 5.2.5 Dynamic Choice. Utility-Based Valuation of Risk covers IEA 5.2.6 Risk. Mean-Variance Analysis: Risk vs. Expected Return explains how a risk-averse agent would construct an optimal portfolio if he could choose between two assets, a risk-free asset and a risky asset.
Who Pays a Sales Tax covers IEA 6.1 Taxes.
Introduction to Economic Analysis is available at www.introecon.com.