Mathematica Notebooks on Microeconomic Topics

These notebooks feature animated graphics and were written for students in my introductory and intermediate microeconomics courses. I will be adding more as I convert my old (version 2) notebooks.

This first group of notebooks concern the theory of cost.

1. Average and Marginal Products of labor.
2. The relationship between the short run production function and the short run MC curve (in a two-good world).
3. The geometric relationship between FC and AFC.
4. The geometric relationship between VC and AVC.
5. The geometric relationship between TC and ATC.
6. The geometric relationship between TC and MC.
7. AC - AVC and TC - ATC
8. VC - AVC and TC - MC.
9. VC - AVC, TC - ATC and TC - MC.
10. All curves shown simultaneously.
11. Long Run Average Total Cost as the lower envelope of the short run ATC curves.
12. Another view of the unit and total cost curves in the short and long run.

The next set of animations are for the model of perfect competition.

1. Cost and revenue for a firm in a competitive industry.
2. Increase in demand in a constant-cost industry.
3. Decrease in demand in a constant-cost industry.
4. Increase in demand in an increasing-cost industry.
5. Decrease in demand in an increasing-cost industry.
6. Increase in demand in a decreasing-cost industry.
7. Decrease in demand in a decreasing-cost industry.

The next group of animations adds two additional quadrants to the competitive model. The demand curve of a representative consumer is shown below the indifference curve/budget line diagram. The diagrams show the short and long run effects of income changes for a normal good.

1. Increase in consumer income for a constant cost industry.
2. Increase in consumer income for an increasing cost industry.
3. Increase in consumer income for a decreasing cost industry.
4. Decrease in consumer income for a constant cost industry.
5. Decrease in consumer income for an increasing cost industry.
6. Decrease in consumer income for a decreasing cost industry.

The following notebooks are for the theory of the consumer and show income and substitution effects of various price changes.

1. The Slutsky equation for a decrease in the price of good one.
2. The Slutsky equation for an increase in the price of good one.
3. The Slutsky equation for a decrease in the price of good two.
4. The Slutsky equation for an increase in the price of good two.
5. The Slutsky equation with endowments for a decrease in the price of good one--net buyer of good one.
6. The Slutsky equation with endowments for a decrease in the price of good one--net seller of good one.
7. The Slutsky equation with endowments for a decrease in the price of good two--net buyer of good one.
8. The Slutsky equation with endowments for a decrease in the price of good two--net seller of good one.
9. The Slutsky equation with endowments for an increase in the price of good one--net buyer of good one.
10. The Slutsky equation with endowments for an increase in the price of good one--net seller of good one.
11. The Slutsky equation with endowments for an increase in the price of good two--net buyer of good one.
12. The Slutsky equation with endowments for an increase in the price of good two--net seller of good one.

Some additional topics from the theory of the consumer.

1. The Price-Offer curve.
2. The Price-Offer curve and net demand/supply curves.
3. The CES utility function.
4. The derivation of leisure demand.
5. The derivation of leisure demand and labor supply.
6. The derivation of leisure demand: the backward-bending case.
7. The derivation of leisure demand and labor supply: the backward-bending case.
8. Expected utility for a risk averse consumer.
9. A slightly different (improved?) version of 8.
10. Expected utility for a risk-lover.
11. A slightly different version of 10.
12. Deriving the ordinary demand curve in a two-good world.
13. Derive two demand curves for differenet levels of income.
14. Circular Flow diagram.
15. Derivation of the Edgeworth box diagram.
16. Price-offer curves and the Edgeworth Box.
17. A closer look at the price-offer curves.

Here are animated Lorenz curves and Gini coefficients for twenty countries.