How do changes in prices or income affect consumers’ choices? How are producers’ choices of technology influenced by changes in labour costs—will they shift to more capital-intensive production, choose to automate, or perhaps relocate production to a low-cost country? How is the market price affected by a tax, and how does such a tax influence consumers, producers, and society as a whole? What problems does pollution create for social welfare, and how should the authorities intervene to address these problems? How does a monopolist choose price and quantity, and what challenges does this create for society? And what about oligopolies—that is, markets with few firms: how are price and quantity determined in such markets, and what strategies can a firm use to gain a competitive advantage? Strategic interaction is not limited to choices about price or quantity; game theory shows how many situations involving elements of conflict can be analysed. Microeconomics examines all these questions. The course consists of four parts: consumer theory, producer theory, market analysis, and imperfect competition and game theory.