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The Power of Markets I: The Basics of Supply and Demand and Consumer Behavior

Approx. 7 hours to complete

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Course Summary

This course explores the concept of market power and how it affects firms, consumers, and society as a whole. You will learn about different types of market structures, the effects of market power on pricing and output decisions, and the role of antitrust policy in regulating market power.

Key Learning Points

Understand the concept of market power and its impact on firms, consumers, and society
Learn about different market structures and their characteristics
Examine the effects of market power on pricing and output decisions
Explore the role of antitrust policy in regulating market power

Learning Outcomes

An understanding of market power and its effects on firms, consumers, and society
Knowledge of different market structures and their characteristics
Ability to analyze the effects of market power on pricing and output decisions

Prerequisites or good to have knowledge before taking this course

Basic knowledge of microeconomics
Familiarity with mathematical concepts such as calculus and algebra

Course Difficulty Level

Intermediate

Course Format

Online self-paced course
Video lectures
Quizzes and assignments

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Related Education Paths

Related Books

Description

This opening module of the Power of Markets course covers the basic assumptions about market participants made by economists, the concept of opportunity cost, and the key determinants of supply and demand. We will then learn how to use the supply-demand framework to explain and predict market outcomes and to show how government policies affect those market outcomes. We will look at how quantity demanded and supplied respond to their key determinants in quantitative (elasticity) as well as qualitative terms. The last two weeks of the first module will investigate consumer behavior more closely and show how consumer choices are driven by the interplay of preferences and budget constraints. We will employ the consumer choice framework to examine investor choice as well as policies such as ObamaCare and school choice. Finally, we will also address the concept of how to distribute a given amount of goods across a society’s consumers in the most efficient manner.

Outline

Week 1 - Supply and Demand
Course Materials and General Advice
Some Preliminaries About Microeconomics
Basic Assumptions About Market Participants
Opportunity Cost
Sunk Costs/Benefits
Production Possibility Frontier (PPF)
The Determinants of Demand
The Determinants of Supply
Market Equilibrium
Syllabus
Week 1 Quiz

Week 2 - Supply and Demand
Intro to Week 2
Predicting and Explaining Market Outcomes
Government Intervention in Markets: Price Ceilings
Price Elasticity of Demand and it's Relationship to Total Expenditure
Calculating and Applying Price Elasticity of Demand
Determinants of Elasticity of Demand
Three Other Elasticities
Sharpening your Understanding of Price Elasticity of Demand and Supply
Week 2 Quiz

Week 3 - Consumer Choice
Intro to Week 3
Consumer Preferences
Sharpening Your Understanding of Indifference Curves
The Budget Constraint
The Consumer’s Optimal Choice
Changes in Income and Consumption Choices
Accounting for Altruism
Price Changes and Consumption Choices
From Individual to Market Demand
Week 3 Quiz

Week 4 - Consumer Choice and the Benefits of Exchange
Intro and Consumer Surplus
The Price-Consumption Curve and Elasticity of Demand
Excise Subsidies - Health Care and Consumer Welfare
Analyzing ObamaCare I
Analyzing ObamaCare II
Analyzing School Choice I
Analyzing School Choice II
Investor Choice
Efficiency in the Distribution of Goods
Week 4 Quiz

Summary of User Reviews

Market Power is a highly recommended course that received positive feedback from many users. The course covers important topics related to market power and monopolies, and it is delivered in an engaging and interactive manner. Overall, users found the course to be insightful and informative.

Key Aspect Users Liked About This Course

The real-life examples and case studies used in the course were highly appreciated by many users.

Pros from User Reviews

Insightful and informative content
Engaging and interactive course delivery
Real-life examples and case studies used in the course were highly appreciated
Instructors were knowledgeable and responsive
The course is well-structured and easy to follow

Cons from User Reviews

Some users felt that the course was too basic and lacked in-depth analysis
The course may not be suitable for advanced learners
The price of the course is a bit high compared to other similar courses
The course may not be suitable for learners looking for practical applications of the concepts
The course may not cover all aspects of market power and monopolies

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