1. AAEC 3315Agricultural Price TheorySummer II, 2014 Instructor: Shaikh M Rahman E-mail: shaikh.m.rahman@ttu.edu Telephone: (806) 834-0505 • Office: 307-A, Ag. Science Building • Office Hours: 11:00 AM – 12:00 PM, MWTRF and by appointment

2. AAEC 3315Outline • Introduction • Demand, Supply, and Equilibrium • The Behavior of Consumer: A Consumer’s Constrained Choice • Demand • Consumer Welfare and Policy Analysis • The Behavior of Firms: Production • The Behavior of Firms: Costs • Competitive Firms and Markets • General Equilibrium and Economic Welfare • Monopoly and Monopsony • Oligopoly and Monopolistic Competition • Factor markets • Uncertainty

3. AAEC 3315Expected Learning Outcomes • Understand basic decision making at the consumer level leading to the derivation of individual consumer and market demand functions for commodities; • Understand basic decision making at the producer level leading to the derivation of individual firm and whole industry supply functions for outputs, and acquire specific knowledge about how these supply functions are affected by market, technological, and policy related factors; • Understand the derivation of individual firm and whole industry demand functions for inputs; • Evaluate the basic functioning and operation of alternative market structures, and how these structures impact social welfare; • Analyze the real world problems associated with agricultural markets and agribusiness using microeconomic tools.

4. AAEC 3315 • Required Text • Microecinomics: Theory and Application with Calculus, Third Edition, by Jeffrey M. Perloff, Pearson. • Web Link • http://www.mypearsonstore.com/bookstore/microeconomics-theory-and-applications-with-calculus-0133423859 • Check Digital and Print Choices

5. The Learning Process:Methods of Assessing Learning Outcomes • Class Attendance and Participation • Each student is expected to attend every class period, be prepared to respond to questions in the class, and summarizing the materials covered in the previous class and unannounced quizzes when given. • Students are also encouraged to ask questions related to the course topics. • Class attendance will be checked regularly. • If you miss a class, it is your responsibility to make up anything missed. • Absences may be excused only in cases of serious illness (doctor’s note is required) and complementary academic activities (advance proof of participation is required).

6. AAEC 3315 • Quizzes: • There will be several quizzes throughout the semester. • Any missed quiz will receive a grade of zero. • The lowest score of the quizzes will be dropped before taking average • Exams: • There will be two mid-term exams and a final exam. • Mid-term exam 1: Thursday, 17 Jul. 2014, 9:00 – 10:00 AM • Mid-term exam 2: Tuesday, 29 Jul. 2014, 9:00 – 10:00 AM • Final Exam: Thursday, 07 Aug 2014, 11:00 AM – 1:30 PM • The exams will include several true/false and multiple choice questions, short questions, and analytical problems. • There will be no makeup exam. • Any missed exam will have a grade of zero. 

7. Methods of Assessing Learning OutcomesDistribution of Grades • Quizzes – 10%of the final grade • Exams – 90% of the final grade • 2 mid-terms and a final exam – each worth 30% of the final grade • Class Attendance and Participation • Students with perfect attendance will receive 4 bonus points • Students with one unexcused absence will receive 2 bonus points • Every unexcused absence over two will lower final grade by 2 points

8. AAEC 3315 • Grading Scale: Final grades will be assigned using the following scale: • A = 90-100 % • B = 80-89% • C = 70-79% • D = 60-69% • F = 0-59%

9. AAEC 3315 • Expectations and Suggestions: • Attend every class, take notes and participate (do not hesitate to ask questions) • Read the text book • Form a study group -- your fellow students are often the best teachers • Be prepared to respond to questions in class • Be prepared to summarize the materials covered in the previous class • Be prepared for unannounced quizzes when given • Spend approximately 20 hours per week (apart from class hours) reading and working on homework assignments • Take the exams entirely on your own