About this course: All goods and services are subject to scarcity at some level. Scarcity means that society must develop some allocation mechanism – rules to determine who gets what. Over recorded history, these allocation rules were usually command based – the king or the emperor would decide. In contemporary times, most countries have turned to market based allocation systems. In markets, prices act as rationing devices, encouraging or discouraging production and encouraging or discouraging consumption in such a way as to find an equilibrium allocation of resources. We will construct demand curves to capture consumer behavior and supply curves to capture producer behavior. The resulting equilibrium price “rations” the scarce commodity. Markets are frequent targets of government intervention. This intervention can be direct control of prices or it could be indirect price pressure through the imposition of taxes or subsidies. Both forms of intervention are impacted by elasticity of demand. After this course, you will be able to: • Describe consumer behavior as captured by the demand curve. • Describe producer behavior as captured by the supply curve. • Explain equilibrium in a market. • Explain the impact of taxes and price controls on market equilibrium. • Explain elasticity of demand. • Describe cost theory and how firms optimize given the constraints of their own costs and an exogenously given price. This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.
Created by: University of Illinois at Urbana-Champaign
Taught by: Larry DeBrock, Dean Emeritus and Professor of Finance and Professor of Economics
University of Illinois, Urbana-Champaign College of Business Department of Business Administration
| Basic Info | Course 1 of 7 in the Managerial Economics and Business Analysis Specialization |
| Commitment | 4 weeks, 3-5 hours/week |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Complete this course to work toward:
Managerial Economics and Business Analysis Specialization
This course is part of the 7-course Managerial Economics and Business Analysis Specialization from University of Illinois at Urbana-Champaign
Master of Business Administration (iMBA)
This course is part of the fully-online 18 courses plus three capstone projects degree program
Syllabus
WEEK 1
Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
1 video, 5 readings, 1 practice quiz
- Leyendo: Syllabus
- Leyendo: About the Discussion Forums
- Leyendo: Glossary
- Cuestionario de práctica: Orientation Quiz
- Leyendo: Updating Your Profile
- Cuadro de aviso de la discusión: Getting to Know Your Classmates
- Leyendo: Social Media
Module 1: Scarcity, Allocation, and Markets
The fundamental problem of scarcity challenges us to think about an allocation mechanism to determine what is produced and who consumes it. We will discuss scarcity and allocation mechanisms. In this course, we will focus on markets and prices as the solution to this resource allocation problem.
7 videos, 3 readings, 2 practice quizzes
- Leyendo: Module 1 Overview
- Leyendo: Module 1 Readings
- Video: 1-1.2. Opportunity Costs
- Video: 1-1.3. Demand Curves
- Cuestionario de práctica: Lesson 1-1 Practice Quiz
- Video: 1-2.1. More on the Demand Curve
- Video: 1-2.2. Movements Along vs. Shifts in the Demand Curve
- Video: 1-2.3. Constructing the Supply Curve
- Video: 1-2.4. Movements to New Equilibrium
- Cuestionario de práctica: Lesson 1-2 Practice Quiz
- Leyendo: Module 1 Peer Review Explanation
Graded: Module 1 Peer Review Assignment
Graded: Module 1 Quiz
WEEK 2
Module 2: Government Intervention in Markets
Markets are frequent targets of governments. This module will introduce government policy intervention into the market. This intervention can be direct control of prices or it could be indirect price pressure through the imposition of taxes or subsidies. Both forms of intervention are impacted by elasticity.
10 videos, 3 readings, 3 practice quizzes
- Leyendo: Module 2 Overview
- Leyendo: Module 2 Readings
- Video: 2-1.2. Government Intervention
- Video: 2-1.3. Direct Price Controls: Price Floors
- Video: 2-1.4. Direct Price Controls: Price Ceilings
- Cuestionario de práctica: Lesson 2-1 Practice Quiz
- Video: 2-2.1. The Price You Pay at the Pump
- Video: 2-2.2. Excise Taxes
- Video: 2-2.3. The Incidence of Taxation
- Cuestionario de práctica: Lesson 2-2 Practice Quiz
- Video: 2-3.1. Higher Tuition Yet More College Applications
- Video: 2-3.2. Responsiveness of Quantity Demanded and Elasticity
- Video: 2-3.3. Elasticity Along a Linear Demand
- Cuestionario de práctica: Lesson 2-3 Practice Quiz
- Leyendo: Module 2 Peer Review Explanation
Graded: Module 2 Peer Review Assignment
Graded: Module 2 Quiz
WEEK 3
Module 3: Firms, Production, and Costs
This module will introduce cost theory. Firms are interested in producing profits, which are the residuals when costs are subtracted from revenue. Earlier modules constructed demand curves. They give us an idea of how many units of product we can sell at different prices; this would be firm revenue. We will work to understand inputs, production, and costs.
9 videos, 3 readings, 2 practice quizzes
- Leyendo: Module 3 Overview
- Leyendo: Module 3 Readings
- Video: 3-1.2. Types of Firms
- Video: 3-1.3. Behavior Rule
- Video: 3-1.4. Behavior Rule – Part 2
- Video: 3-1.5. Law of Diminishing Marginal Returns
- Cuestionario de práctica: Lesson 3-1 Practice Quiz
- Video: 3-2.1. Cost Curves
- Video: 3-2.2. Derive Short Run Total Cost Family of Curves
- Video: 3-2.3. Derive Short Run Average Cost Family of Curves
- Video: 3-2.4. Derive and Depict Short Run Marginal Costs
- Cuestionario de práctica: Lesson 3-2 Practice Quiz
- Leyendo: Module 3 Peer Review Explanation
Graded: Module 3 Peer Review Assignment
Graded: Module 3 Quiz
WEEK 4
Module 4: Firm Behavior
The firm goal of profit maximization requires an understanding of costs and revenues. In this module, we will see how a firm optimally responds to a given market price by finding the profit maximizing output. The level of profits at this maximum profit point will help determine short run equilibrium.
7 videos, 3 readings, 2 practice quizzes
- Leyendo: Module 4 Overview
- Leyendo: Module 4 Readings
- Video: 4-1.2. Maximizing Profit
- Video: 4-1.3 Maximizing Profit Graphically
- Cuestionario de práctica: Lesson 4-1 Practice Quiz
- Video: 4-2.1. Showing Points on a Graph
- Video: 4-2.2. Profits After Total Cost Changes
- Video: 4-2.3. Short Run Shutdown Decisions
- Video: 4-2.4. Graphing Shutdown Conditions
- Cuestionario de práctica: Lesson 4-2 Practice Quiz
- Leyendo: Module 4 Peer Review Explanation
Graded: Module 4 Peer Review Assignment
Graded: Module 4 Quiz
FAQs
How It Works
Trabajo del curso
Cada curso es como un libro de texto interactivo, con videos pregrabados, cuestionarios y proyectos.
Ayuda de tus compañeros
Conéctate con miles de estudiantes y debate ideas y materiales del curso, y obtén ayuda para dominar los conceptos.
Certificados
Obtén reconocimiento oficial por tu trabajo y comparte tu éxito con amigos, compañeros y empleadores.
Creators
University of Illinois at Urbana-Champaign
The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.
Pricing
| Purchase Course | |
|---|---|
| Access to course materials | Available |
| Access to graded materials | Available |
| Receive a final grade | Available |
| Earn a shareable Course Certificate | Available |
Ratings and Reviews
Well organized, perfectly flexible class with a nice professor. As a total stranger to this topic I really learned a lot and wasn't overwhelmed. 5 stars if you communicate from beginning on that the readings are optional but that it is highly recommended to read at least parts of them. Had a bit of a time issue in the first week.
I took Micro Econ over 20 years ago. It was hard and boring. I barely passed the class. I just took Larry DeBrock's class and fell in love with the area. I had no idea that micro economics could be so interesting! It also helps that Larry DeBrock is an award winning lecturer at University of Illinois and past Dean of the ?business School. He takes the topic and breaks it down into easy-to-understand basics. I really enjoyed this class.
Great class and great Professor!
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This course was a great introduction into economics. It was my first class in this field and I really enjoyed it!