Price theory and applications

Economics is a science designed to explain the real world. So it is not only dull but fundamentally misleading to present "theory" in the absence of "applications." I have provided dozens of boxed Examples throughout this book to indicate specific ways-and, of course, specifics are essential here-in which microeconomic theory does indeed illuminate the real world. These discussions, based as they help the as they usually are upon recent research reported in scholarly books or journals, also help the student gain some idea as to the scientific work that economists actually do. (This is a that needs telling. Judging from the media picture, is a story omics profession is nothing but the economics squabbling band of rival soothsayers. That there are actual scientific results in economics may be a sur gothsaye to most students.) In addition to these brief Examples, many applied prise to mong them the negative inco topics-a among income tax, , rationing of E consumption goods.