In addition to updating the book, I have also refined its coverage and pedagogy with input from many users of the previous edition. There are many changes, both large and small. For example, the basic presentation of supply and demand in Chapter 4 has been rearranged and improved. More important, this new edition contains two new chapters. A new chapter on the ''Frontiers of Microeconomics'' introduces students to the economics of asymmetric information, political economy, and behavioral economics.
A new chapter on '' The Basic Tools of Finance'' develops the concepts of present value, risk management, and asset valuation. ( Only the complete 36-chapter version of this book includes both of these chapters. See below for outlines of each of the five avaliable versions.) These new chapters are optional, and instructors can skip them without loss of continuity. But adding these topics should give students a greater appreciation of the use and scope of economics.
1. Ten Principles of Economics
2. Thinking Like an Economist
3. Interdependence and the Gains from Trade
4. The Market Forces of Supply and Demand
5. Elasticity and Its Application
6. Supply, Demand, and Gevernment Policies
7. Consumers, Producers and the Efficiency of Markets
8. Applications: The Costs of Taxation
9. Application: International Trade
10. Externalities
,etc.