Revealed Preference Analysis: Assumptions
on Preferences, Principle of Preference Revelation, Direct Preference
Revelation, Indirect Preference Revelation
Axioms of Revealed Preference: The Weak
Axiom of Revealed Preference (WARP), The Strong Axiom of Revealed
Preference, Checking if Data Violate the WARP, Recovering Indifference
Curves from choice data
Index numbers: Quantity Index Numbers (the
Laspeyres quantity index, the Paasche quantity index); Price Index Numbers
(the Laspeyres price index, the Paasche price index)
Chapter 8
Effects of a Price Change: Real Income Changes; The Overall (Total)
Change in Demand – Decomposition into the Slutsky Pure Substitution Effect
and the Income Effect; Slutsky’s Effects for
Normal Goods, Slutsky’s Effects for Income-Inferior Goods, Slutsky’s
Effects for Giffen Goods
Slutsky Identity: Calculating
Substitution Effect and Income Effect for given commodity demand
function; Slutsky Identity in terms of rates of Change, the Law of Demand;
Substitution Effect and the Income Effect for perfect complements and
perfect substitutes, Substitution Effect and the Income Effect for
quasilinear preferences
Effects of a Price Change: Real Income
Changes; The Overall (Total) Change in Demand – Decomposition into the Hicks
Pure Substitution Effect and the Income Effect; the Compensated Demand
Curve
Chapter 15
Market Demand Function: Horizontal
Aggregation of Individual Demand Functions, Representative Consumer Model
Demand Elasticity: Own-Price Elasticity,
Cross-Price Elasticity, Income Elasticity, Economic Applications of Elasticity, Arc and Point Elasticities;
Point Own-Price Elasticity: Elastic and Inelastic
Demand, Revenue and Own-Price Elasticity of Demand, Marginal Revenue and
Own-Price Elasticity of Demand
Chapter 18
Production (Technological) Set: Input
Bundles, Production Plans; Production Function, Isoquant and Isoquant
Maps; Cobb-Douglas Technologies, Fixed-Proportions Technologies, Perfect-Substitutes
Technologies; Average Factor (Input) Productivity, Marginal (Physical) Factor
Products; Short Run and Long Run Analysis of Production Technology
Returns-to-Scale: Increasing Returns-to-Scale,
Constant Returns-to-Scale, Decreasing Returns-to-Scale, Returns-to-Scale
of Homogeneous of degree “k” Production Function; Technical
Rate-of-Substitution
Neoclassical Production Functions: Basic
Assumptions
Chapter 19
Economic Profit: the Competitive Firm, the
economic profit generated by the production plan, Short-run and Long-run Profit
Maximization, Short-run and Long-run Iso-Profit Lines
Short-Run Profit-Maximization: Graphical
and Analytical Decisions, A Cobb-Douglas Example, Comparative Statics of
Short-Run Profit-Maximization (changes in output price p and input
price w1)
Long-run Profit Maximization Graphical
and Analytical Decisions, A Cobb-Douglas Example, Returns-to-Scale and
Profit-Maximization
Revealed Profitability: Basic Idea and
Assumptions on the Firm Behavior, implications of profit-maximization
Chapter 20
Cost function: the Cost-Minimization
Problem, Iso-cost Lines, Graphical and Graphical and Analytical Decisions
of the Cost-Minimization Problem; Cost Function for a Cobb-Douglas technology,
technology with Fixed Factor Proportions (Factors – Perfect Substitutes),
technology with Factors – Perfect Complements
Average Total Production Costs:
Relationship between Returns-to-Scale and Average Total Costs
