A study of the determination of relative prices and their importance in shaping the allocation of resources and the distribution of income. Subjects include: behavior of households in a variety of settings, such as buying goods and services, saving, and labor supply; behavior of firms in various kinds of markets; results of competitive and noncompetitive markets in goods, labor, land, and capital; market failure; government policies as sources of and responses to market failure; welfare criteria; limitations of mainstream analysis. Instructors may use elementary calculus in assigned readings, lectures, exams, and problems. Format: lecture. Requirements: problem sets, one or two midterms, and a final exam. Prerequisites: Economics 110 and Mathematics 103 or its equivalent.

Hour: : HUSBANDS FEALING, BRADBURD, SHEPPARD,S

ECON 251M(F,S) Price and Allocation Theory

These sections of Economics 251 will employ a somewhat more mathematical exposition of microtheory and require Mathematics 105 or the equivalent.

Hour: SHORE-SHEPPARD, MANI