electiveHQ

The aim of this module is to introduce students to core microeconomic principles and how they can be used to help understand decision making and behaviour in a business environment. The module focuses on markets as the principle arena where these decisions are made and stresses that both firms and consumers make choices under conditions of scarcity and do not have unlimited resources. A model of consumer demand is presented showing how consumers respond to changes in prices, incomes and other factors. On the supply side, a model of the production decisions of firms is presented and the roles of costs and technology are explored. Market structure is also explicitly considered ranging from perfect competition to monopoly and the strategic interaction of firms is also addressed. Finally, it is stressed throughout the module that markets often fail and in those cases some form of intervention, typically but not exclusively provided by government, to correct these failures is warranted. The impact of Covid-19 will also be integrated into the analysis showing how it can impact decisions of consumers and firms and also its relevance for social interactions. The module assumes no previous knowledge of economics.