Trustees:
This updated version plots marginal benefits and costs at the midpoints of the intervals of the quantity changes for which they are calculated.
Updated further on Mon., March 27 after withdrawal of the Republican proposal, with more recent reports and analysis.
Previously updated after class on Fri., March 10, with optional links (at the top of the second list of links) to more recent articles and to a summary of Kenneth Arrow's seminal 1963 analysis of the economics of health care.
This has been updated to correct the choice of which cells in the table to highlight for calculation of short-run TP, APL and MPL. In the original version, a row was highlighted with L=10. The corrected version highlights the cells with K=10, consistent with the wording of the question.
This older version of the example was distributed in print, and reviewed first. A newer version with a linear MC function is posted as well, and should also be examined as a model, since it is closer to the exercise for students to work through.
This version of the example was intended to be distributed in print, and was shown initially in class before noticing that the version distributed was the older one instead. It is closer to the exercise for students to work through, with algebraic solution possible, so should also be used as a model.
This spreadsheet lists the order of presentations at the beginning of the final exam session.
The part shaded pink is correct, but was copied incorrectly (on Wed. 2/8) as its reciprocal to the first part shaded green. That error was repeated in the later parts shaded green. A corrected derivation will be shown in the next class (Thurs. 2/9). The final result of the correction will be only that b, rather than 1-b, will appear in the demand function for restaurant meals (R).
We got through only part of this presentation.
For chapters without slides with notes below, there are usually slides without notes under Presentations above. The exception is the topic of chapter 5, about which I lectured from handwritten notes that are too messy to bother to scan and send. Let's Skype to go over that.
For the appendix, the slides' typed notes lack many details of algebraic derivation of the best affordable bundle from a utility function and the prices and budget (income). We should Skype about this and I may be able to scan and send some handwritten notes.
These are an old version of the slides and notes. I've updated this chapter's notes over the years by hand without typing them into the PPT file. Match these notes with the current version of the slides (without notes) above under Presentations. Both sets of slides (and the typed notes) lack many numerical, graphical and algebraic examples that we should discuss by Skype and that I may send scans of.
These student departmental assistants with experience in the courses listed are available for drop-in tutoring, on the schedule shown in the separate spreadsheet.
Optional, using calculus for marginal analysis.
In the Cobb-Douglas utility function presented in class, the exponents on the quantities of goods (b and 1-b) were assumed to be between 0 and 1 and sum to 1. b represents the relative taste (as a share of 1) of the consumer for the first good, and so appears in each demand function.
These lecture notes are very similar, but use a slightly more general form of the function in which the exponents (a and b) are between 0 and 1 but may not sum to 1. Here a/(a+b) represents the relative taste of the consumer for the first good.
This supplements readings assigned in the document under Activities.
Another supplement.
How does this relate to economics?
For specific assignments, please see the Coursework page.
A version of the short paper assessment rubric with numeric codes for levels of attainment of the objectives. Use it to read any codes in feedback on a short paper.
Follow these guidelines in directing your participation in class sessions.