Lahore University of Management Sciences

BSc (Economics) Program

School of Economics
Autumn 2004
SUBJECT:

ECON 210: Microeconomics 1

Quarter:

Autumn 2004

INSTRUCTOR:

Tamkeen Fatima Jafri

Contact Details:

Room 246
Tel. Extension: 2246
E-mail: tamkeen@lums.edu.pk

OFFICE HOURS:

Monday and Wednesday: 17 00 18 00 (Room: 246)

CLASS HOURS:

Lecture Group 1: Monday/Wednesday/Friday

Lecture Group 2: Tuesday/Thursday/Friday

PRE-REQUISITE:

(1) Calculus-1/ A-levels Maths or equivalent

(2) Principles of Economics / A-levels Economics or equivalent

AIMS AND OBJECTIVES:

The basic objective of this course is to develop students ability to use analytic reasoning to understand
and apply the basic models of microeconomic theory. This course deals with the economic behaviour of
individual units, such as consumers, firms, and markets. We will study how prices are determined in
equilibrium and how resources are allocated. We will consider both competitive market and markets
with imperfect competition. Considerable emphasis will be placed on problem solving and the
application of microeconomic theory to selected public policy issues.

Text Books
1.

Varian, Hal R., Intermediate Microeconomics: A Modern Approach, 5th ed., W.W. Norton,
1999.

Additional Readings
1.

Bergstrom, Theodore C., Hal R. Varian, Workouts in Intermediate Microeconomics, 5th ed.,
W.W. Norton, 1999.

Assessment Details
Quizzes (4):

30%

Mid-term Exam:

30%

Final Exam:

40%

Two lectures of 75 minutes and one lecture of 50 minutes is scheduled per week. The exam component
is 30% for the Mid-term exam plus 40% for the Final exam. All material discussed in the first fourteen
(14) lectures will be covered in the Mid-term exam. The final examination will be comprehensive and
will cover material from the whole course, but with an emphasis on the second half. The weight age
given to the pre-midterm and post-term course will be 20% and 80% respectively. There will be four

announced quizzes for the course during the term and will have 30% weight attached towards the final
grade. Students will be given some assignments. These assignments will be based on numerical
questions, problem solving and economic application. The assignments will serve as practice questions
for the students.
Quizzes and Exam Schedule
Quiz 1
Quiz 2
Mid-term Exam
Quiz 3
Quiz 4
Final Exam

Week 2, Lecture 3
Week 4, Lecture 3
Week 6 (Day and Time TBA)
Week 8, Lecture 3
Week 10, Lecture 3
Week 11 (Day and Time TBA)
Schedule for Lectures

Week

Topics
1

Budget Constraints, Preferences

Chapters (Intermediate
Microeconomics by Varian)
Ch. 2, 3.

Preferences, Utility

Ch. 3 (Cont.), 4.

Utility Maximization, Deriving the Demand Curve

Ch. 5, 6.

Slutsky Equation, Income and Substitution Effects, Consumer Surplus Ch. 8, 14.

Market Demand, Elasticity, Equilibrium

Ch. 15, 16.

6
6

Midterm
Technology, Profit Maximization

Ch. 18, 19.

Cost Minimization, Cost Curves

Ch. 20, 21.

Firm Supply, Industry Supply

Ch. 22, 23.

Imperfect Competition: Monopoly, Price Discrimination, Product

Differentiation
Final Exam

Ch. 24, 25.

9 and 10