Consumer Choice Demand- Willingness and Ability

Slides:

Advertisements

Similar presentations

Economics Chapter 4 Section 1.

Advertisements

Behind The Demand Curve I 1.Marginal utility theory 1.Marginal utility theory assumptions assumptions law of diminishing marginal utility law of diminishing.

Utility Allyson Colangelo.

Unit#2 NAME EconomicsDate/ Period Vocabulary Activity #1 Unit #2 1.Law of Demand-an increase in a goods price causes a decrease in quantity demanded 2.Purchasing.

Behind The Demand Curve I 1.Marginal utility theory assumptions assumptions law of diminishing marginal utility law of diminishing marginal utility optimal.

1 of 8 Principles of Microeconomics: Econ102. Utility: The enjoyment or satisfaction that people receive from consuming goods and services. Marginal utility:

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.

Utility Law of Diminishing Marginal Utility Because additional units yield less and less utility, the consumer is willing to pay less and less for the.

1 Chapter 5 Marginal Utility & Consumer Choice 5/23/2015 © ©1999 South-Western College Publishing.

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

Demand, Utility, and the Value of Time Today: An introduction to a route choice situation and utility.

Chapter 7: Consumer choice

1 Marginal Utility & Consumer Choice: Chapter 5. “I’ve been rich and I’ve been poor, and believe me, it’s better being rich” --- Sophie Tucker, a 1920s.

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

Ch. 19: Consumer Choice: Maximizing Utility and Behavioral Economics

Consumer choice.

Demand and Utility. Diminishing Marginal Utility: The more you have of a good, the less an additional unit of the good is worth to you.

Consumer and Producer Surplus

CHAPTER 3, SECTION 1- THE NATURE OF DEMAND

The Laws of Demand and Supply.

Utility and Demand Michael Parkin ECONOMICS 5e. TM 8-2 Copyright © 1998 Addison Wesley Longman, Inc. Learning Objectives Explain the household’s budget.

Utility and Demand CHAPTER 7. 2 After studying this chapter you will be able to Explain what limits a household’s consumption choices Describe preferences.

UTILITY and DEMAND.

Standard  SSEMI2 a.  Define the Law of Demand..

Or…My Pet Rock Died.. Demand : the desire to have some good or service and the ability to pay for it. It isn’t enough for consumers to desire a good,

Chapter 3. Demand Demand (D) is the amount of a good or service a consumer is willing and able to purchase at various prices during a given period of.

Econ Unit 3 Demand.

Chapter 4:Demand What is Demand? Factors affecting Demand Elasticity of Demand What is Demand? Factors affecting Demand Elasticity of Demand.

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.

Consumer Behavior & Utility Maximization ECO 2023 Chapter 7 Fall 2007 Created by: M. Mari.

Chapter 20.1 What is Demand?. An Introduction to Demand In the U.S., the forces of supply and demand work together to set prices. Demand is the desire,

© 2012 McGraw-Hill Ryerson Limited

Chapter 20 Consumer Choice.

Chapter 19 Copyright  2002 by The McGraw-Hill Companies, Inc. All rights reserved Theory of Consumer Behavior.

Consumer Decision Making Frederick University 2014.

Demand: how much (quantity) of a product or service is desired by buyers Supply: How much of the good or service the market has to/can offer Law of Demand:

By: Chloe, Ariel, and Emily

Farid Abolhassani A Simple Model of Demand 3. Learning Objectives After working through this chapter, you will be able to: Define the term ‘quantity demanded’

Household Behavior and

UTILITY and DEMAND UTILITY Utility is satisfaction. We get utility from the consumption of goods and services. We aim to maximise our total utility.

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 desire, ability, and willingness to buy a product Questions that need answered Where?- competition How much?- market sustainability.

WARM-UP What is demand? What products or things are most “in- demand” to you and why? List 5.

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.

UTILITY Utility is satisfaction. We get utility from the consumption of goods and services. We aim to maximise our total utility. Utility can be measured.

Demand Chapter 4. What is Demand? Demand- the desire, ability, and willingness to buy a product. Microeconomics- the area of economics that deals with.

REVIEW FOR FURTHER EXPLANATIONS, PLEASE READ Wonderling, David; Reinhold Gruen & NickBlack (2005), Introduction to Health Economics, England: London School.

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

Consumer Choice: Maximizing Utility and Behavioural Economics

What Is Demand?.

Microeconomics Chapter 6 Consumer Behavior

Mr. Bernstein Module 51: Utility Maximization September 2017

Supply and Demand.

CHAPTER 4 DEMAND.

Mr. Bernstein Module 51: Utility Maximization September 2016

What is Demand? Chapter 4 Section 1.

DEMAND CHAPTER 20, SECTIONS 1 & 2.

Ch. 4 Vocabulary Quiz Review/Demand

© EMC Publishing, LLC.

Bell Work Get out your notebook.

Supply & Demand The Law of Demand.

Chapter 7 Consumer Behavior & Utility Maximization.

Consumer Choice: Maximizing Utility

Reading Quiz Define demand. What is the substitution effect?

Supply and Demand Objectives

DEMAND CHAPTER 20, SECTIONS 1 & 2.

Consumer Choice Demand- Willingness and Ability

Diminishing Marginal Utility

Presentation transcript:

Consumer Choice Demand- Willingness and Ability Consumer Surplus- Price above what you had to spend Utility- Satisfaction gained from purchase

Utility- want satisfying power of a good or service “Getting the most for your money” $$$$$$$$$

Consumer & Producer Surplus

Important Vocabulary Utility Analysis Util Total Utility Marginal Utility= Change in total utility / change in number of units consumed Consumer Optimum Law of Diminishing Marginal Utility

Calculating Utils

Graphing Total and Marginal Utility

Measuring Total and Marginal Utility

Calculating Consumer Optimum And spend all your money!

The Diamond- Water Paradox Why does water cost more than diamonds when water is a need and diamonds are frivolous?

Decisions Regarding Utility Firms Households Government