Microeconomics I is a core course in economic science and introduces students to the basic analytical tools used to study the decisions of consumers and firms. The course examines demand and supply, preference and utility theory, consumer behaviour, production and cost theory, firm behaviour in competitive markets, and the welfare effects of basic government interventions.

Upon successful completion of the course, students will be able to:

• analyse the decisions of consumers and firms in a scientific manner, using basic microeconomic models;
• interpret the functioning of markets through the concepts of demand, supply, and equilibrium;
• apply preference theory, budget constraints, and utility maximisation to analyse consumer choice;
• distinguish and calculate, at a basic level, substitution and income effects, demand elasticities, and welfare changes;
• analyse special applications of consumer theory, such as labour supply, intertemporal choice, and choice under uncertainty;
• interpret production technology, isoquants, returns to scale, and the relationship between production and cost;
• apply cost theory and profit maximisation to analyse firm behaviour;
• analyse short-run and long-run equilibrium in competitive markets;
• evaluate the effects of government interventions, such as taxes, subsidies, quotas, and tariffs, on resource allocation and the welfare of consumers and producers;
• solve numerical, algebraic, and diagrammatic problems and clearly present their economic reasoning.

The course is organised into thematic units covering the core areas of Microeconomics. Indicative structure:

1. Introduction to Microeconomics. Markets, demand, supply, and equilibrium.
2. Preferences, utility, and the budget constraint.
3. Consumer behaviour, consumer equilibrium, and the individual demand curve.
4. Substitution and income effects. The Slutsky equation.
5. Market demand, price and income elasticities, and consumer surplus.
6. Applications of consumer theory: allocation of time and labour supply.
7. Intertemporal choice and choice under risk/uncertainty.
8. Production theory: technology, factors of production, total, average, and marginal product.
9. Isoquants, elasticity of substitution, short run and long run, and returns to scale.
10. Cost theory: optimal input combination, total, average, and marginal cost, short-run and long-run cost functions.
11. Theory of the firm and profit maximisation.
12. Competitive markets in the short run and the long run. Producer surplus.
13. Government intervention in competitive markets: taxes, subsidies, production quotas, tariffs, and import quotas.

Teaching is accompanied by the solution of numerical and diagrammatic exercises, discussion of applications, and interpretation of basic economic results.

Lectures (4 hours per week) and Tutorials (1 hour per week)

The total workload of 200 hours corresponds to 8 ECTS credits.

Assessment is conducted in Greek, and the final grade is determined as follows: final written examination 60%, mid-term examination/progress test 20%, and short exercises, quizzes, or in-class application questions 20%.

The final and mid-term examinations assess students’ understanding of key concepts, their ability to apply theoretical models, solve numerical and diagrammatic exercises, and interpret economic results. They may include multiple-choice questions, short-answer questions, essay questions, and application exercises.

The short exercises/quizzes component assesses the active application of course material during the semester and is not equivalent to mere physical attendance. The assessment criteria are posted on the course webpage on the e-class platform.

Support of the learning process through the e-class platform, posting lecture presentations and educational material, use of diagrams/exercises, and electronic communication with students.