Principles of Microeconomics is suitable for introductory microeconomics courses usually called principles of microeconomics, microeconomics principles, introductory microeconomics, or similar titles taught primarily at the undergraduate level at two- and four-year colleges and universities. The course may also be taught at the MBA level. This volume encompasses only microeconomic topics and would typically be used in a semester- or quarter-long course. Separate volumes titled Principles of Economics (covering both microeconomic and macroeconomic topics) and Principles of Macroeconomics are also available.
This new version of Principles of Microeconomics welcomes a third co-author, Alan Grant, who brings fresh, classroom-based insights that enliven the text and bring it fully up to date. The two core premises of this book remain constant, however:
- Economics is a unified discipline and not a bewildering array of seemingly unrelated topics. As a result, Version 4.0 of this volume remains structured around the key integrating theme of the marginal decision rule.
- Basic microeconomic principles are relevant to daily life and should be explained in everyday contexts. In this way, learners more readily perceive and understand the deeper meaning of core economic ideas. Engaging in-text applications and plentiful embedded video links are drawn from sports, politics, campus life, popular culture, and other familiar settings to illustrate the connections between theoretical principles and common experiences.
Examples of the forward-looking perspective of Version 4.0 include new research on technological change and the wage gap, the impact of graduating college during an economic downturn, policies to reduce carbon emissions, and controversies surrounding the effectiveness of monetary and fiscal policy. This version also provides an up-to-date evaluation of the COVID-19 recession, including data-driven descriptions of the extraordinary policy response by the Federal Reserve and the government’s equally extraordinary fiscal response. There is also new discussion of the Chinese economy’s unprecedented economic growth and projections regarding the future pace of that growth. As in previous editions, there is an appropriate balance between current issues and historical context.
New in This Version
New in This Version:
- Significantly reorganized and streamlined coverage:
- Coverage of basic antitrust is now included in Chapter 10 “Monopoly”
- New or expanded sections on:
- Taxes (Chapter 4)
- Why elasticity matters (Chapter 5)
- Asymmetric information and market failures in health care (Chapter 6)
- Price discrimination (Chapter 11)
- Over 20 new or substantially revised Case in Point features that include:
- The Opportunity Cost of COVID-19 (Chapter 1)
- Is Beer a Normal Good? (Chapter 3)
- Uber Finds the Market Equilibrium (Chapter 3)
- The Topsy-Turvy World of 2020 Oil Prices (Chapter 4)
- The Supply Elasticity of Toilet Paper and the Coronavirus Crisis of 2020 (Chapter 5)
- Beating the Reaper: Exercise and the Production of Longevity (Chapter 8)
- A Textbook Case of Market Power (Chapter 10)
- Pro Sports Teams as Monopsonists (Chapter 12)
- Substantially expanded, updated, and upgraded illustration program featuring more use of color, such as:
- “A Demand Schedule and a Demand Curve” (Figure 3.1)
- “An Increase in Demand” (Figure 3.2)
- “Changes in Demand and Supply” (Figure 3.10)
- “A Change in Expectations Affects the Price of Intel’s Corporate Stock” (Figure 4.8)
- “Price Floors in Wheat Markets” (Figure 4.9)