Bakeonomics350: Intro to Baking and Economics 
Spring 2022 Syllabus

Week 1 

Basic Concepts and Assumptions in Economics

• Economics Major "Ina Garten was an Econ Major​"

• Prices "The Magic of Chocolate Chips"

• Opportunity Cost: “Opportunity Cost, Economic Profit, and Opening a Bakery” (Cherry Pie)

• Sunk Costs: “Salt and Sunk Costs” (Brownies)

• Incentives "COVID-19; Crossing State Borders & Homemade Vanilla Extract"

• Marginal Thinking “Thinking on the Margin and Birthday Cake”

 

Week 2

• Building the Demand Curve

• Demand versus Quantity Demanded + Choc-Oat-Chip Bars

• Diminishing Marginal Benefit: 

  • “Pink Icing and Diminishing Marginal Benefit” (Amish Cookies)

  • "Matilda Cake Scene: Economics is Everywhere" (Chocolate Cake)

• Complements and Substitutes 

  • “Complements and Substitutes in Baking” (Biscuits)

  • Complements, Substitutes, and Giving Thanks (Sweet Potato Casserole)

• Bang for Buck decision-making "'Bang for Buck' and Regular vs. Instant Grits"

• Shifts in Demand "COVID-19: Lumber, Pools, NYC Suburbs, & Gingerbread Houses: Unexpected Winners during a Pandemic"

 

Week 3 

Basics of the Supply Curve

• Supply Curves “Supply Curve of Chocolate Chip Cookies”

• Marginal Cost increases "Red Roses and Chocolate Cookies on Valentine's Day"

• Inputs & Foreign Labor "COVID-19: Foreign Labor & Strawberries"

• Shifts in Supply "Covid-19: Maryland Crabs versus Maine Lobster: Two Crustaceans, Two Different Problems." 

 

Week 4 

Equilibrium

• Shifts in Supply and Demand “Honey: Shifts in Demand AND Supply"

• Negative Prices "COVID-19: Negative Oil Prices & Girl Scout Cookies"

• Shifts in Supply "COVID-19: Meat prices are high but farmers are hurting (+Texas Kolaches)"

 

Week 5 

Equilibrium Continued: Elasticity & Price Controls

• Shifts in Demand, Shortages, & Elasticity of Supply "Price Spikes and Oat Milk" 

• Elasticity of Supply  "COVID-19; Flour, Yeast, and Milk; Elasticity of Supply" 

• Price Ceilings “Croissants and Butter” (Chocolate Croissants)

 

Week 6 

Externalities / Taxes

• "Chocolate and Chilis" (Mexican Brownies)

• "Gender Reveal (cake) Externalities"

• "Soda Taxes, Check-Out Restrictions, and Potato Chip Cookies"

 

Week 7 

Trade

• Trade War & Tariffs “Banana Bread and Trade Wars” 

• Brexit & Tariffs "The Impact of Brexit on Oranges" (Orange Scones)

• Trade, Tariffs, Export Bans, Etc. "COVID-19: How COVID-19 gave an unexpected boost to Thai Rice Exports (+ Rice Pudding)"

• Blueberry Imports "Are Imports Bad? The Case of the Blueberry​"

 

Week 8 

Short-Run and Long-Run Firm Decisions Perfect Competition

• Shut Down Decisions “Ice Cream and Shut Down Decisions”

• Short & Long Run Decision Making "S'Mores Pie, Marshmallows, & an Explanation of Short and Long Run Firm Decision-making"

• White versus Brown Eggs and Long-Run Prices (+ Creme Brûlée)

 

Week 9

Monopolies and Monopolistic Competition

• Monopoly Power "Trademarks, Copyrights, Patents, and Cake & Brownie Mixes(Brownies with Cherries on Top)

• Cartels “Maple Syrup Cartel”

• Collusion "Collusion in the Milk Market + Tres Leches Cake"

• Price Discrimination “Tortillas and Price Discrimination”

• Monopoly Power "Greek Feta, Government Protections, and Cheese Pies"

• Monopolistic Competition “Monopolistic Competition and Peanut Butter Cookies”

• Competition between Firms "The Colorful Fight Between Margarine and Butter"

• Monopoly to Monopolistic Competition "Raisin Bran was Once a Monopoly (Bran Muffins)"

 

Week 10

Asymmetric Information

• Asymmetric Information “The Market for Lemon Meringue Pie”

• Principal-Agent Problems "Cookie Dough Cheesecake & Asymmetric Info "

 

Week 11 

Intro to Macroeconomics

• Money "Chocolate is Money" (M&M Cookies)

• GDP, Consumption, and Cornbread (+ Chili)

• "Rising Inflation"

 

Week 12

Intro to Econometrics

• Randomized Control Trials "Nobel Prize, RCTs, and Cookies in Class" (Chocolate Chip Shortbread Cookies)

• Crossing State Borders "COVID-19; Crossing State Borders & Homemade Vanilla Extract"

 

Week 13 

Intro to Financial Literacy

• The Importance of Diversification in Desserts & Finance

• Importance of Keeping Track of Spending "Cookie Jar of Money"

• Budgeting for an Event (or Money) can be Freeing!

• Friendship Bread and Compounding Interest

• Little Expenses can Add up "Coffee (Angelfood Cake) Expenses"

• Pie Filling vs. Crust; Inflation vs. Interest