Intermediate Microeconomics
A Modern Approach
Ninth Edition
Preface xix
1 The Market
Constructing a Model 1 Optimization and Equilibrium 3 The Demand
Curve 3 The Supply Curve 5 Market Equilibrium 7 Comparative
Statics 9 Other Ways to Allocate Apartments 11 The Discriminating
Monopolist • The Ordinary Monopolist • Rent Control •
Which Way Is Best? 14 Pareto Efficiency 15 Comparing Ways to Allocate
Apartments 16 Equilibrium in the Long Run 17 Summary 18
Review Questions 19
2 Budget Constraint
The Budget Constraint 20 Two Goods Are Often Enough 21 Properties
of the Budget Set 22 How the Budget Line Changes 24 The
Numeraire 26 Taxes, Subsidies, and Rationing 26 Example: The
Food Stamp Program Budget Line Changes 31 Summary 31 Review
Questions 32
3 Preferences
Consumer Preferences 34 Assumptions about Preferences 35 Indifference
Curves 36 Examples of Preferences 37 Perfect Substitutes
• Perfect Complements • Bads • Neutrals • Satiation • Discrete
Goods • Well-Behaved Preferences 44 The Marginal Rate of Substitution
48 Other Interpretations of the MRS 50 Behavior of the MRS
51 Summary 52 Review Questions 52
4 Utility
Cardinal Utility 57 Constructing a Utility Function 58 Some Examples
of Utility Functions 59 Example: Indifference Curves from Utility
Perfect Substitutes • Perfect Complements • Quasilinear Preferences
• Cobb-Douglas Preferences • Marginal Utility 65 Marginal Utility
and MRS 66 Utility for Commuting 67 Summary 69 Review
Questions 70 Appendix 70 Example: Cobb-Douglas Preferences
6 Demand
Normal and Inferior Goods 96 Income Offer Curves and Engel Curves
97 Some Examples 99 Perfect Substitutes • Perfect Complements
• Cobb-Douglas Preferences • Homothetic Preferences • Quasilinear
Preferences • Ordinary Goods and Giffen Goods 104 The Price Offer
Curve and the Demand Curve 106 Some Examples 107 Perfect
Substitutes • Perfect Complements • A Discrete Good • Substitutes
and Complements 111 The Inverse Demand Function 112 Summary
114 Review Questions 115 Appendix 115