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Back to Firm Level Economics: Consumer and Producer Behavior

Firm Level Economics: Consumer and Producer Behavior, University of Illinois at Urbana-Champaign

4.8
585 ratings
135 reviews

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....

Top reviews

By FP

May 13, 2017

In the beginning I thought this was going to be a very basic course, but the way the professor explained the topics really make it interesting a practical, going beyond the classical economic theory.

By RS

Aug 23, 2017

Excellent course and very well explained every basic economic concept with real examples.\n\nThanks a lot Professor for allowing me to audit this course, wishing you a great success ahead!!

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130 Reviews

By Upasna Tyagi

Apr 19, 2019

very informative, very smooth teaching techniques. loved it

By Kanwar Simar Singh

Apr 01, 2019

GREAT COURSE. iNSTRUCTOR WAS EXELLENT. GREAT EXPLANTIONS AND GOOD COVERAGE.

By Vivianne Pereira Salas Roldan

Mar 23, 2019

Excelente

By Innocent Okwenna

Mar 18, 2019

The course was well understood as the instructor made everything seem so easy

By Eric M. Leander, Esq.

Mar 08, 2019

Very interesting material and well-delivered and understandable / accessible. Not entirely sure of it's real-world applicability just yet.

By Keith Kendall Dupersoy

Mar 03, 2019

Great course, professor is really good at explaining the concepts.

By Kausar Khan

Mar 01, 2019

Learned a lot on Supply & Demand and different markets in this course. The course is well written/prepared and had a fun time going thru this.

By John Stibbard

Feb 28, 2019

Peer review took awhile for Module #4, alittle stressful as the deadline looms. Not a infrastructure issue, even emails to individuals were barely successful, need to improve on my part to do it earlier or how to influence peer reviews.

By Sohaib Faruq

Feb 28, 2019

Very interesting course for learning price theory

By Noah Mundt

Feb 27, 2019

Never look at a jar of mayonnaise the same again! Thanks Larry!