Microeconomia - Efeito-substituição e efeito-renda - Aula 6

The course is organized into 14 lectures and follows the syllabus and bibliography outlined below. Course coordinator: Dr. Renato de Castro Garcia (Institute of Economics – Unicamp) SYLLABUS 1. INTRODUCTION 1.1 Basic concepts; 1.2 Overview of competitive markets. Readings: VARIAN (2012), ch. 1; PINDYCK & RUBINFELD (2010), chs. 1–2. 2. CONSUMER THEORY 2.1 Budget constraint, preferences, and utility; 2.2 Choice and optimization; 2.3 Individual demand, income and substitution effects; 2.4 Consumer surplus, market demand, and elasticity. Readings: VARIAN (2012), chs. 2–9, 14–15; PINDYCK & RUBINFELD (2010), chs. 3–4. 3. PRODUCER THEORY 3.1 Production; 3.2 Costs of production; 3.3 Profit maximization and competitive supply. Readings: VARIAN (2012), chs. 18–23; PINDYCK & RUBINFELD (2010), chs. 6–8. 4. MARKET EQUILIBRIUM 4.1 Competitive markets. Readings: VARIAN (2012), ch. 16; PINDYCK & RUBINFELD (2010), ch. 9. REFERENCES VARIAN, H. R. Microeconomics: Basic Principles – A Modern Approach. 9th ed. Rio de Janeiro: Elsevier, 2015. PINDYCK, R. S.; RUBINFELD, D. L. Microeconomics. 7th ed. São Paulo: Pearson, 2010. #microeconomics #economictheory #economics Video timestamps 00:00 – Introduction: The Slutsky Decomposition 00:42 – Price Effect = Substitution Effect + Income Effect 01:39 – Definition: Substitution Effect (change in relative prices) 02:29 – Definition: Income Effect (change in purchasing power) 03:56 – Graphical analysis: the “rotation” of the budget line 07:37 – The Slutsky Method: isolating the substitution effect (compensated income) 19:33 – Case 1: Decomposition for normal goods 21:29 – Case 2: Decomposition for inferior goods 26:18 – Case 3: Decomposition for Giffen goods 30:42 – Alternative method: Hicksian decomposition (constant utility)