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The exciting new ninth edition of PRICE THEORY AND APPLICATIONS delivers a text that will both challenge and intrigue students as it equips them with the tools and skills to apply economic principles to the world around them. Inductive, hands on, and highly interactive, the book is intellectually rigorous yet student-friendly, with countless applications and resources to help readers fully understand concepts. Using the same humorous, easy-to-read approach as his popular The Armchair Economist, Steven Landsburg offers thorough coverage of traditional topics of intermediate price theory as well as emerging issues, such as the economics of information. Social welfare is a unifying concept throughout. Available with InfoTrac® Student Collections http://gocengage.com/infotrac.
- Chapter 3 (on Indifference Curves) is largely reorganized and rewritten for greater clarity.
- Approximately 20% of the problems are either new or substantially revised.
- New step-by-step worked sample problems early in the text help students understand key concepts.
- InfoTrac® Student Collections are specialized databases expertly drawn from the Gale Academic One library. Each InfoTrac® Student Collection enhances the student learning experience in the specific course area related to the product. These specialized databases allow access to hundreds of scholarly and popular publications - all reliable sources - including journals, encyclopedias, and academic reports. Learn more and access at: http://gocengage.com/infotrac.
- The section on comparing the efficiency of different taxes (income taxes, consumption taxes, wage taxes, etc) has been drastically streamlined to focus on the key issues while deferring the distracting complications to optional end-of-chapter problems.
- The material on consumer and producer surplus is largely reorganized and rewritten for greater clarity.
- The material on efficiency and deadweight loss is largely rewritten to focus on multiple ways of thinking about efficiency (including "shrinking pies", "forgone opportunities to do good", "weighted voting", etc.) and how they reinforce each other.
- The material on financial crises is updated to reflect contemporary events.
- The material on monopoly is updated to reflect current events.
- The material on antitrust law is thoroughly updated to reflect major decisions of the past few years including, e.g. Apple versus Motorola.
- The material on externalities is tweaked to clarify the conditions under which a Pigou tax is or is not optimal.
- Extensive sections are devoted to topics excluded from many standard intermediate textbooks, such as alternative normative criteria, efficient asset markets, contestable markets, antitrust law, mechanisms for eliciting private information regarding demand for public goods, human capital, increasing returns in economic growth, the Capital Asset Pricing Model, and the pricing of stock options.
- This text contains an extended analysis of market failures, property rights, and rules of law (Chapter 13), including a detailed development of market failure using a series of extended examples as well as actual court cases. It also covers various legal theories from the point of view of economic efficiency.
- Price Theory includes an excellent assortment of both fictional and real-world examples. Many examples and exercises are based on fictional organizations. This encourages students to focus on the economic principle, application, and problem involved rather than the mechanics of a particular company. For instructors who prefer real-life situations, the seventh edition also includes 20 new real-world business examples, giving students an up-close view of microeconomics in the context of actual organizations.
- The cutting-edge ninth edition thoroughly develops the standard topics of intermediate price theory as well as such innovative topics as the economics of information, alternative normative criteria, efficient asset markets, contestable markets, antitrust law, human capital, and the demand for public goods. It also uses the timely topic of social welfare as a unifying concept throughout.
- The microeconomic relationship to macroeconomics is illustrated throughout the text. Several purely "micro" topics are illustrated with "macro" applications, such as information, intemporal decision making, labor markets in general equilibrium, and rational expectations. The chapter on interest rates contains a purely microeconomic analysis of the effects of federal deficits.
2. Prices, Costs, and the Gains from Trade.
3. The Behavior of Consumers.
Appendix: Cardinal Utility.
4. Consumers in the Marketplace.
5. The Behavior of Firms.
6. Production and Costs.
8. Welfare Economics and the Gains from Trade.
Appendix: Normative Criteria.
9. Knowledge and Information.
11. Market Power, Collusion, and Oligopoly.
12. The Theory of Games.
13. External Costs and Benefits.
14. Common Property and Public Goods.
15. The Demand for Factors of Production.
16. The Market for Labor.
17. Allocating Goods over Time.
18. Risk and Uncertainty.
19. What Is Economics?
Appendix A: Calculus Supplement.
Appendix B: Answers to Exercises.
Appendix C: Answers to Problem Sets.