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

Slides:

Advertisements

Similar presentations

1 Q: Why is the tangent point special?. 2 A: It gives us a short cut.

Advertisements

© 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.

McGraw-Hill/Irwin Copyright  2006 by The McGraw-Hill Companies, Inc. All rights reserved. INDIFFERENCE CURVE ANALYSIS INDIFFERENCE CURVE ANALYSIS Chapter.

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

Chapter 3: Consumer Behavior 1 of 37 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 8e. MARGINAL.

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

Utility Maximization Module KRUGMAN'S MICROECONOMICS for AP* Micro: 15

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

McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

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 10 The Rational Consumer. 2 What you will learn in this chapter: How consumers choose to spend their income on goods and services Why consumers.

Sequences and Series. Limits. Differential Calculus. Partial derivatives. Lagrangian multiplier. September 2011.

Professors Farhoud Kafi Consumer Preference and Behavior What are the consumer opportunity?  Array of goods and services they can afford. What.

© 2003 McGraw-Hill Ryerson Limited The Logic of Individual Choice: The Foundation of Supply and Demand Chapter 8.

Consumer Choice Theory Principles of Microeconomics 2023 Boris Nikolaev.

WHAT YOU WILL LEARN IN THIS CHAPTER chapter: 10 >> Krugman/Wells Economics ©2009  Worth Publishers The Rational Consumer.

© 2010 Pearson Addison-Wesley. Preferences A household’s preferences determine the benefits or satisfaction a person receives consuming a good or service.

Lecture 5. How to find utility maximizing bundle/ optimal bundle A consumer if better off if he can reach to a higher indifference curve. Due to the limited.

Consumer Choice, Utility, and Revealed Preference

McGraw-Hill/Irwin Copyright  2006 by The McGraw-Hill Companies, Inc. All rights reserved. THE LOGIC OF INDIVIDUAL CHOICE: THE FOUNDATION OF DEMAND AND.

1 Chapter 3: Theory of Consumer Behavior. 2 Indifference Curves and Budget Constraints Individuals seek to maximize utility by allocating income across.

DEMAND BY ALANNA SMYTH. DEMAND…..  Means the number of units of a good which consumers are willing to purchase at any given market price at any given.

Demand: The Benefit Side of the Market. 2 Law of Demand  Law of Demand  People do less of what they want to do as the cost of doing it rises  Recall.

What does the economic term “Utility” mean? Utility means “satisfaction.”

© 2012 McGraw-Hill Ryerson Limited

Consumer choices The Benefit Side of Demand Chapter 5.

CHAPTER 10 The Rational Consumer.

Utility Maximization. Utility and Consumption ▫Concept of utility offers a way to study choices that are made in a more or less rational way. ▫Utility.

CONSUMER BEHAVIOR. UTILITY The satisfaction that consumption of a good or service provides.

Utility Maximization Lesson Utility as Satisfaction Utility and Consumption – Utility is an imaginary measure of satisfaction. Principle of Diminishing.

2002 Microeconomics Question 3.

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.

1 Chapter 4 Prof. Dr. Mohamed I. Migdad Professor in Economics 2015.

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. 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.

Calculating Marginal Utility. Marginal Utility Is the extra satisfaction generated from consuming one more unit of a good Is the extra satisfaction generated.

Utility Maximization Module KRUGMAN'S MICROECONOMICS for AP* Micro: 15

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

Indifference Curve Analysis

ECN 201: Principles of Microeconomics

Microeconomics Chapter 6 Consumer Behavior

THE LOGIC OF INDIVIDUAL CHOICE: THE FOUNDATION OF DEMAND AND SUPPLY

Unit 3: Utility Ap Micro 9/27.

Mr. Bernstein Module 51: Utility Maximization September 2017

Supply and Demand.

Mr. Bernstein Module 51: Utility Maximization September 2016

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

Consumer Behavior & Utility Maximization

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

EQ #4 – AGEC 105 – September 17, 2012 (4 pts)

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

The Heart & Soul of Market Economics

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

The Heart & Soul of Market Economics

EQ # September 19, (4 pts) Quantity of Sandwiches

Maximizing Utility Preferences

Total and Marginal Utility

Consumer Behavior Ch. 7.

EQ #2 AGEC Capps (4 pts) September 12, 2011

Consumer Choice: Maximizing Utility

Consumer Behavior and Utility Maximization

Supply and Demand Objectives

McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 2 A Theory of Preferences

Copyright © 2005 Pearson Education Canada Inc.

Presentation transcript:

EQ #3 AGEC 105 (4 pts) September 14, 2011 1. Given the following data: Quantity of Sodas Total Utility Marginal Utility (MU) 1 10 -- 2 18 ?(a) 6 30 ?(b) The MU between 1 and 2 sodas is ______________. The MU between 2 and 6 sodas is ______________. A rational consumer maximizes his/her satisfaction or _____________. The marginal utility of a good (i.e. ice cream) declines with increases in the consumption of that good. This phenomenon is referred to as the ___________________. For a representative consumer, 4 wings and 3 bottles of Dr. Pepper generate the same utility as 6 wings and 2 bottles of Dr. Pepper. How many wings must the consumer give up in order to get one more bottle of Dr. Pepper? What is the technical name associated with this trade-off? _________________ 5. The graph of alternative consumption bundles that provide a consumer a given level of satisfaction is called a(n) ________________ curve. ½ pt. 1 pt.