Introduction to Principles of Microeconomics:
Which role does this course play in your program? If we press the fast forward button of your college life, and stand at the point of your graduation, you might find it hard to recall the definition of a specific concept, however, you are more confident than yourself as a freshman to solve some problems because of the “tools” (skills) to solve problems you have accumulated (learnt) throughout the program. There is never the best way to solve any problem, but a relatively better one given the time and resources available. Living in an age of information, it is imperative to develop the ability to analyze what has been provided and to have some of your own opinion about what is going on. When news has been learnt about an emerging industry, you might want to ask the following questions:
1. What is the current market supply and demand, and what will be the expected market supply and demand?
2. What will be the trend in the market price given the supply and demand analysis from question 1 and how about the cost?
3. What kind of policies will have impacts on the industry in the short run and long run. and etc.
After learning this course, you will have the ability to process information from a different perspective.
Real life example using supply and demand analysis:
Market supply and demand of the letters written by Abraham Lincoln and by John Wilkes Booth.
The supply and demand curves on the left are for Booth’s letters, and the supply and demand curves on the right are for Lincoln’s letters.
The market equilibrium price for Booth’s letter is more expensive than Lincoln’s. Whenever the supply is higher, the market price will be lower than the products with a lower supply. Silver is cheaper than gold, because the market supply of silver is more than the gold. Despite the market demand for Lincoln’s letters is more than the demand for Booth’s, it doesn’t compensate for the higher supply which drives the price down.
As a result, the market equilibrium price for Lincoln’s letter is cheaper than Booth’s letter. ($ 21,850 < $ 31,050). Illustration figure is shown below.
Which role does this course play in your program? If we press the fast forward button of your college life, and stand at the point of your graduation, you might find it hard to recall the definition of a specific concept, however, you are more confident than yourself as a freshman to solve some problems because of the “tools” (skills) to solve problems you have accumulated (learnt) throughout the program. There is never the best way to solve any problem, but a relatively better one given the time and resources available. Living in an age of information, it is imperative to develop the ability to analyze what has been provided and to have some of your own opinion about what is going on. When news has been learnt about an emerging industry, you might want to ask the following questions:
1. What is the current market supply and demand, and what will be the expected market supply and demand?
2. What will be the trend in the market price given the supply and demand analysis from question 1 and how about the cost?
3. What kind of policies will have impacts on the industry in the short run and long run. and etc.
After learning this course, you will have the ability to process information from a different perspective.
Real life example using supply and demand analysis:
Market supply and demand of the letters written by Abraham Lincoln and by John Wilkes Booth.
The supply and demand curves on the left are for Booth’s letters, and the supply and demand curves on the right are for Lincoln’s letters.
The market equilibrium price for Booth’s letter is more expensive than Lincoln’s. Whenever the supply is higher, the market price will be lower than the products with a lower supply. Silver is cheaper than gold, because the market supply of silver is more than the gold. Despite the market demand for Lincoln’s letters is more than the demand for Booth’s, it doesn’t compensate for the higher supply which drives the price down.
As a result, the market equilibrium price for Lincoln’s letter is cheaper than Booth’s letter. ($ 21,850 < $ 31,050). Illustration figure is shown below.