MODERN PRINCIPLES OF
MICROECONOMICS
Third Edition
Tyler Cowen
George Mason University
Alex Tabarrok
George Mason University
Vice President, Editorial: Charles Linsmeier
Vice President, Editing, Design, and Media Production: Catherine Woods
Executive Editor: Carlise Stembridge
Marketing Manager: Tom Digiano
Consulting Editor: Paul Shensa
Senior Developmental Editor: Bruce Kaplan
Supplements and Media Editor: Lindsay Neff
Art Director: Diana Blume
Cover and Text Designer: Diana Blume
Director of Editing, Design, and Media Production: Tracey Kuehn
Managing Editor: Lisa Kinne
Project Editor: Fred Dahl, TSIevolve
Photo Editor: Robin Fadool
Production Manager: Barbara Anne Seixas
Supplements Production Manager: Stacey Alexander
Supplements Project Editor: Edgar Doolan
Composition: TSIevolve
Printing and Binding: RR Donnelley
Cover Image: © Oleh Barabash/Alamy and Jim Roof/myLoupe.com
Library of Congress Preassigned Control Number: 2014952565
ISBN-13: 978-1-4292-7841-6
ISBN-10: 1-4292-7841-2
© 2015, 2013, 2010 by Worth Publishers
All rights reserved.
Printed in the United States of America
First printing
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41 Madison Avenue
New York, NY 10010
Economics is the study of how to get the most out of life.
Tyler and Alex