EQ #3 – AGEC 105 (4 pts in total) Capps - Sept. 11, 2013

Slides:

Advertisements

Similar presentations

Assessment Test Short Answer. General comments 1. Demonstrate an understanding of the principles of economics 1. Demonstrate an understanding of the principles.

Advertisements

CONSUMERS EQUILIBRIUM When a consumer gets maximum satisfaction out of a commodity. This situation is known as consumer equilibrium.

© 2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1 st ed. c h a p t e r nine Prepared by: Fernando & Yvonn.

Consumer Choice Theory. Overview Over the last several weeks, we have taken demand and supply curves as given. We now start examining where demand and.

C4S1: Demand Main Idea: –Demand is a willingness to buy a product at a particular price.

Consumer Choice From utility to demand. Scarcity and constraints Economics is about making choices.  Everything has an opportunity cost (scarcity): You.

1 Consumption Theory Why Growth and maintenance of life process Comfort Satisfaction – utility Pleasure – utility Display-Advertise status or perception.

Managerial Economics & Business Strategy Chapter 4 The Theory of Individual Behavior.

Utility: Getting Satisfaction Movies Other Total Concerts $40) $240 $8) 160 1,600 $2,000 A limited income. The mix of food, entertainment, etc.

Chapter 7: Consumer choice

Theory of Consumer Behavior

Chapter 20: Consumer Choice

Mr. Bernstein Module 51: Utility Maximization September 8, 2014

PRINICIPLES OF CONSUMER BEHAVIOUR. CHOICE AND UTILITY THEORY:- (a)What is utility ? Utility means satisfaction. It is a scientific construction economist.

AN INTRODUCTION TO MICROECONOMICS Dr. Mohammed Migdad.

Indifference Curves and Utility Maximization

CHAPTER 3, SECTION 1- THE NATURE OF DEMAND

The Laws of Demand and Supply.

© 2003 Prentice Hall Business PublishingEconomics: Principles and Tools, 3/eO’Sullivan/Sheffrin Prepared by: Fernando Quijano and Yvonn Quijano CHAPTERCHAPTER.

Consumer Choice Theory Principles of Microeconomics 2023 Boris Nikolaev.

Consumer Behavior 06 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

The Nature of Demand 3.1 Demand—The amount of a good or service that that a consumer is willing and able to buy at various possible prices during a given.

Chapter 3 Consumer Preferences.

Demand Mr. Nunn. Demand The willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period.

1 Chapter 6 Practice Quiz Consumer Choice Theory.

Utility: A Measure of the Amount of SATISFACTION A Consumer Derives from Units of a Good Chapter 5: Utility Analysis.

The Nature of Demand Demand—The amount of a good or service that that a consumer is willing and able to buy at various possible prices during a given period.

“The Law of Demand” 7-1 Notes Demand: How many goods and services consumers will buy at various prices Effected by –Willingness to buy –Ability to buy.

© 2009 Pearson Education Canada 2/1 Chapter 2 A Theory of Preferences.

CDAE Class 4 Sept. 6 Last class: 1.Introduction 2.Preferences and choice Class exercise 1 Today: 2. Preferences and choice Next class: 2.Preferences.

TA Office Hours Jing “Jill” Yi Office: 391 AGLS Hours: MW 10am – 11am

Introduction to Neoclassical Trade Theory: Tools to Be Employed Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Factors the Affect Demand Unit 4.2. More About the Demand Curve Law of Diminishing Marginal Utility – The second item will not give as much satisfaction.

Demand: It is the quantity of a good or service that customers are willing and able to purchase during a specified period under a given set of economic.

What three factors determine the demand for a product?

Demand. Demand The amount of a good or service that a consumer is willing and able to buy at various possible prices during a given time period. The graph.

CONSUMER EQUILIBRIUM The utility approach – Cardinal approach STUDY UNIT 7.

Theme 1: Introduction to markets and market failure.

 Consumer behavior and demand.  Satisfaction,  happiness,  benefit.

EQ #4 – AGEC 105 (4 pts in total) Capps - Sept. 16, 2013

Consumer Behavior: Utility Maximization

Robbin likes a beverage (Coca-Cola, of course) with her wings

ECN 201: Principles of Microeconomics

SUPPLY & DEMAND Law of Demand Law of Supply Market Price – Equilibrium

The Heart & Soul of Market Economics

Supply and Demand.

Consumer Choice.

EQ #3 – AGEC 105 (4 pts in total) Capps - Sept. 11, 2013

Consumer Behavior & Utility Maximization

Theory of Consumer Behavior

EQ # 10 – AGEC 105 – October 21, 2013 (4 points)

EQ #3 AGEC 105 (4 pts) September 12, Given the following data:

EQ #3 AGEC 105 (4 pts) September 12, Given the following data:

EQ #6 – AGEC 105 (3 pts in total) Capps – October 2, 2013

The Nature of Demand Demand—The amount of a good or service that a consumer is willing and able to buy at various possible prices during a given period.

EQ #5 – AGEC 105 (3 pts in total) Capps - Sept. 23, 2013

EQ #4 – AGEC 105 (4 pts in total) Capps - Sept. 16, 2013

Indifference Curves and Utility Maximization

An Introduction to Demand

Chapter 7 Consumer Behavior & Utility Maximization.

Theory of Consumer Behavior

Demand and Supply Chapters 4, 5 and 6.

Supply and Demand Objectives

Consumer Behavior and Utility Maximization

Chapter 2 A Theory of Preferences

Factors of Demand.

EQ #3 AGEC 105 (4 pts) September 14, Given the following data:

AGED 570: Teaching H.S. Agricultural Economics

Presentation transcript:

EQ #3 – AGEC 105 (4 pts in total) Capps - Sept. 11, 2013 Given the following data: The MU between 3 and 5 wings is ______15 utils__________. The marginal utility of any good declines with increases in the consumption of that good. This phenomenon is referred to as the law of diminishing marginal utility. Quantity of Wings Total Utility Marginal Utility (MU) 3 60 -- 5 90 ?

(a) This diagram represents a(an) iso-utility curve indifference curve (b) True or False. 8 pizzas and 2 wings represent the same level of satisfaction as 6 pizzas and 3 wings. (c) True or False. If we move from curve I1 to I2, total utility decreases. For a representative consumer, 8 tacos and 2 hamburgers generate the same utility as 4 tacos and 4 hamburgers. (a) How many tacos must the consumer give up in order to get one more hamburger? -2 (b) What is the technical name associated with this trade-off? marginal rate of substitution (MRS) Qpizza A 8 6 I2 B I1 2 3 Qwings

Random Question What U.S. president was a successful liquor distributor and owned a distillery? Hint: He also gave the shortest inaugural address on record. George Washington