ECON 1B03: Introductory Microeconomics – Syllabus and Study Guide

Course Overview

Introduction to Microeconomics

This course provides an introduction to the fundamental principles of microeconomics, focusing on how individuals and firms make decisions, how markets operate, and the role of government in the economy. Students will learn to apply economic reasoning to contemporary problems and policy issues.

• Course Code: ECON 1B03

• Term: Fall 2025

• Instructor: Dr. Colin Mang

• Instructional Assistant: Aleksandra Gajic

• Units: 3.0

Course Structure

Lectures and Tutorials

The course uses a blended-learning format, combining online lessons, textbook readings, and weekly lectures. Tutorials begin in Week 3 and provide opportunities for group work and homework problem-solving.

• Lectures: Weekly, with video content and textbook readings.

• Tutorials: Weeks 3, 4, 6, and 12. No tutorials in Weeks 1, 2, 5, or 13.

• Homework: 12 assigned exercises, submitted via MyLab.

Course Learning Outcomes

Key Objectives

By the end of the course, students should be able to:

• Explain the basic concepts of supply and demand and price determination.

• Describe the processes by which consumers make decisions.

• Explain how firms make production and pricing decisions.

• Describe the features of competitive, oligopoly, and monopoly market structures.

• Evaluate the role of government in the economy and the effect of policy changes on market outcomes.

Required Materials

Textbook and Resources

• Textbook: Microeconomics (4th Canadian Edition) by Hubbard, O'Brien, Seretis, and Childs

• ISBN: 9780137688272

• Publisher: Pearson Education (2024)

• MyLab Access: Included with textbook for Immediate Access program participants

• Calculator: Casio FX 991 MS or Casio FX 991 MS Plus (required for exams)

• Computer and Internet: Required for online components

Course Topics

Major Topics and Subtopics

• Supply and Demand

  • Definition: Supply refers to the quantity of a good that producers are willing to sell at various prices; demand refers to the quantity that consumers are willing to buy.

  • Law of Demand: As price decreases, quantity demanded increases, ceteris paribus.

  • Law of Supply: As price increases, quantity supplied increases, ceteris paribus.

  • Equilibrium Price: The price at which quantity supplied equals quantity demanded.

  • Formula: $Q_d = a - bP$ $Q_s = c + dP$ Equilibrium: $Q_d = Q_s$

  • Example: If the demand for apples is $Q_d = 100 - 2P$ and the supply is $Q_s = 20 + 3P$, set $Q_d = Q_s$ to solve for equilibrium price.

• Consumer Choice

  • Definition: The process by which consumers decide what goods and services to purchase based on preferences and budget constraints.

  • Utility Maximization: Consumers allocate their income to maximize total utility.

  • Budget Constraint Formula: $P_x X + P_y Y = I$ where $P_x$ and $P_y$ are prices of goods X and Y, and $I$ is income.

  • Example: A consumer with $I = $100,$P_x = $10,$P_y = $5 can buy combinations of X and Y such that $10X + 5Y = 100$.

• Production and Costs

  • Definition: Firms make decisions about how much to produce and at what cost.

  • Short-Run vs. Long-Run: In the short run, at least one input is fixed; in the long run, all inputs are variable.

  • Cost Formulas:

    • Total Cost: $TC = FC + VC$

    • Average Cost: $AC = TC / Q$

    • Marginal Cost: $MC = rac{ riangle TC}{ riangle Q}$

  • Example: If fixed costs are $100, variable costs are $50 for 10 units, then$TC = 100 + 50 = 150$.

• Market Structures

  • Perfect Competition: Many firms, identical products, no barriers to entry.

  • Monopoly: One firm dominates, unique product, high barriers to entry.

  • Oligopoly: Few firms, products may be identical or differentiated, some barriers to entry.

  • Comparison Table:

  Market Structure	Number of Firms	Product Type	Barriers to Entry
  Perfect Competition	Many	Identical	None
  Monopoly	One	Unique	High
  Oligopoly	Few	Identical/Differentiated	Some

• Government and Policy

  • Role of Government: Regulates markets, provides public goods, corrects market failures.

  • Policy Effects: Taxes, subsidies, price controls can affect market outcomes.

  • Example: A tax on cigarettes increases price, reduces quantity demanded, and generates government revenue.

Course Evaluation

Assessment Components

• Syllabus Quiz: 0% (must score 100% to unlock course materials)

• MyLab Homework: 10% (best 10 out of 12 assignments)

• Lecture Participation: 5% (weekly in-class quizzes, optional)

• Tutorial Participation: 5% (weekly activities in tutorials)

• Midterm Test 1: 20% (date: Saturday, October 4, 2025)

• Midterm Test 2: 20% (date: Saturday, November 1, 2025)

• Final Exam: 40% (date: TBA)

Policies and Expectations

Attendance, Participation, and Academic Integrity

• Students are expected to attend lectures and tutorials, complete all assignments, and participate in activities.

• Academic integrity is strictly enforced; plagiarism and cheating are not tolerated.

• Absence policies require documentation for missed tests or assignments.

• Referencing and citation must follow university guidelines.

Additional Info

• Support services are available through Mosaic, Avenue to Learn, Student Accessibility Services, and the McMaster University Library.

• Students must use the approved calculator model for exams.

• All course materials, updates, and schedules are posted on Avenue to Learn (A2L).