Lecture NotesMicroeconomic TheoryGuoqiang TIANDepartment of EconomicsTexas A&M UniversityCollege Station, Texas 77843(******@)May, 2004Contents1 Review of Modern Economics and Mathematics Nature and Role of Modern Economics . . . . . . . . . . . . . . . . . . . . Modern Economics and Economic Theory . . . . . . . . . . . . . . The Standard Analytical Framework of Modern Economics . . . . . Key monly Used or Preferred in Modern Economics Roles of Mathematics in Modern Economics . . . . . . . . . . . . . Conversion between Economic and Mathematical Languages . . . . Limitation and Extension of an Economic Theory . . . . . . . . . . Distinguish Necessary and Su?cient Conditions for Statements . . . Language and Methods of Mathematics . . . . . . . . . . . . . . . . . . . . Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Separating Hyperplane Theorem . . . . . . . . . . . . . . . . . . . . Concave and Convex Functions . . . . . . . . . . . . . . . . . . . . Optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Envelope Theorem . . . . . . . . . . . . . . . . . . . . . . . . . Point-to-Set Mappings . . . . . . . . . . . . . . . . . . . . . . . . . Continuity of a Maximum . . . . . . . . . . . . . . . . . . . . . . . Fixed Point Theorems . . . . . . . . . . . . . . . . . . . . . . . . . 17I Individual Decision Making 212 Consumer Theory Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consumption Set and Budget Constraint . . . . . . . . . . . . . . . . . . . Consumption Set . . . . . . . . . . . . . . . . . . . . . . . . . . . . Budget Constraint . . . . . . . . . . . . . . . . . . . . . . . . . . . Preferences and Utility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preferences . . . . . . . . . . . .
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