Three modelling excercises from microeconomics are presented, both as examples of a methodology for teaching economics to mathematically inclined students, and as a vehicle for teaching modelling as a general skill. The first exercise, a price adjustment model for perfect competition, is given in detail within a formulation/solution/generalization/validation scheme with suggestions for an interactive teaching strategy. The results of giving the exercise to a second‐year BSc class in Mathematics and Computing are reported. Outlines of two further exercises relating to oligopoly and related models are given, and an Appendix provides a series of graduated problems for the first of these exercises.