Microeconomics I

In the course, the following topics are covered: the subject matter and methods of microeconomics and macroeconomics; demand and supply; market equilibrium; elasticity of demand and supply; total and marginal utility; consumer equilibrium; indifference curves and budget lines; substitution and income effects; consumer surplus; determinants of consumer choice; production function; isoquants; firm's production costs; short run and long run; market structures: perfect competition, monopoly, monopolistic competition and oligopoly; optimality criteria under different market models; factor markets: perfect competition and monopsony.

NB! This course will take place in autumn semester 2026/2027 which starts on 31st of August and ends on 24th of January (you can find that information under start date section). TalTech's timetables for autumn semester 2026 will be published at the end of June via tunniplaan.taltech.ee.

After completing this course, the student

• independently uses relevant learning materials and professional sources when applying fundamental microeconomic theories to the analysis of economic problems;
• explains fundamental microeconomic concepts and theories;
• uses economic models to explain economic phenomena and processes;
• solves microeconomic problems systematically by analysing their causes, comparing possible approaches to solving them, and justifying the chosen solution;
• analyses the effects of government interventions, market regulations and external shocks on economic outcomes;
• relates fundamental microeconomic theories to real-world economic problems and phenomena;
• presents microeconomic analyses and arguments clearly in both oral and written form, using appropriate professional terminology;
• formulates and justifies conclusions based on microeconomic analysis.

Final assessment can consist of one test/assignment or several smaller assignments completed during the whole course. After declaring a course the student can re-sit the exam/assessment once. Assessment can be graded or non-graded. For specific information about the assessment process please get in touch with the contact person of this course. For specific information about grade transfer please contact your home university

Basic mathematics.

• Pindyck-Rubinfeld – Microeconomics (9th edition or a newer edition)
• Mankiw, Principles of Economics (7th edition or a newer edition)

lectures, exercises