Classroom Resources

What follows is the core of a price theory or micro textbook. When I taught price theory or micro, I taught various versions of this material and little else. As I got older (and maybe wiser), I stopped teaching the theory of the consumer and the whole concept of efficiency. But those who still use them may find the relevant files useful.

All of this material pushes the idea of equilibrium as a way of capturing market forces. Of course markets are never really in equilibrium, but as I point out here, supply and demand is way of organizing one’s thinking about competition and market forces.

The first essay is my way of making Hayek’s “The Use of Knowledge in Society” a little more vivid to the student by putting it in a supply and demand framework. Not sure if Hayek would have approved but my attempt really helped me understand the power of prices as signals and organizers of knowledge.

If you are a teacher, please encourage your students to use these. If you’re a student these may help you understand micro. There is no charge other than your time.

  How Markets Use Knowledge Download PDF
  Supply and Demand and common mistakes students make when using them Download PDF
  Applications of Supply and Demand Download PDF
  Theory of the Consumer Download PDF
  Consumer Surplus, Producer Surplus and Efficiency Download PDF
  The Theory of the Firm Download PDF