Aims
This module builds on the foundation provided in EC10120, extending and deepening your knowledge of concepts and techniques of neoclassical microeconomics. Our particular concern will be the analysis of rational consumer and producer choice under conditions of certainty and independence of action. Having gained a deeper understanding of the rational choice model in these basic conditions, you will then be in a position to proceed, in your third year, to the study of choice under uncertainty (in EC30610) and strategic choice under conditions of interdependence (in EC30110).

Learning outcomes
By the end of this module students should:

• Have a detailed understanding of the theory of rational choice and be able to apply it to questions of consumer demand, labour supply, individual saving and investment behaviour, choice of production technique, producer demand for factors, producer investment behaviour.

• Be adept at analysing questions of rational choice using Lagrangian technique of constrained optimisation.

• Have an appreciation of how the theory underpins some common tools of applied microeconomic analysis such as price indices.

Module outline
The current year's module outline can be found via The School's website