The aim of the course is:

Microeconomic theory mostly focuses on the decision-making process of economic units: consumers and businesses. Among other things, the allocation of resources and the distribution of income among economic units are examined. From the consumers’ point of view, we examine which products they choose to consume, in what quantities and how the demand curve is eventually formed. From the firms’ side, we examine what quantities of products they will offer for any given price and how the supply curve is formed. The two sides exchange money and goods through the market mechanism, which, under perfect competition, determines the price and quantity of equilibrium.

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

• understand the methodological approach of the phenomena of this particular field of economics, the theoretical framework of supply and demand, the theoretical and practical dimension of market equilibrium and its volatility
• analyse consumers’ “rational” choices who try to maximize their utility
• analyse firms’ choices in the production process by examining the methods for maximizing their profits
• approach and analyse the market structure and its competitive framework