Microeconomics

The course describes how consumers and producers act in markets for both consumer products and inputs. First, the factors that determine demand and supply in a market and how these interact through the price mechanism to reach a market equilibrium are studied. Then consumers' actions in a market and what determines demand are studied in more detail.

Thereafter, producers' actions under various market forms are treated, as well as price formation in the market for input goods, mainly the labour market. The concept of economic efficiency is defined and analysed under different market forms. Finally, shortcomings that may occur in the market system's ability to allocate resources and various measures that exist to deal with this problem, as well as their effects on the market outcome, are discussed.