Economics 115 introduces the basic tools of economic analysis. These tools provide a rigorous framework to understand how individuals, markets, and governments allocate scarce resources. These tools can then be used to design and evaluate related public policy proposals.
Quantitative Training
Economics is a quantitative science. Economic ideas are often most clearly elucidated by applying mathematical tools. This course stresses how to express economic ideas with simple mathematical tools and how to use these to analyze policy problems. Often both graphs and algebra will be used to examine the same problem. We will occasionally use basic calculus such as simple derivatives in this course. Teaching assistants will help students review these skills if needed.
We hope that students will gain familiarity with mathematical reasoning through this course. The goal is not to confuse students through the unnecessary use of math. Instead one goal of this course is to make students appreciate the analytical power that math puts at our disposal and its usefulness in explaining a wide variety of social phenomena.
A typical problem that students might encounter during the first or second week of this course is the following:
Sample Problem
Table 1
| Price | Quantity Demanded |
| $10 | 400 |
| $7 | 600 |
1. Table 1 gives 2 points of a linear demand function. Write down this demand function.
2. How many units are demanded at a price of P=$4?
Table 2
| Price | Quantity Demanded |
| $10 | 400 |
| $7 | 300 |
1. Table 2 gives 2 points of a linear supply function. Write down the supply function.
2. At which price does the quantity demanded equal the quantity supplied?