1. Chapter 3 Demand and Behavior in Markets

2. Copyright © 2001 Addison Wesley LongmanSlide 3- 2 Figure 3.1 Optimal Consumption Bundle

3. Copyright © 2001 Addison Wesley LongmanSlide 3- 3 Figure 3.2 Income Expansion Path

4. Copyright © 2001 Addison Wesley LongmanSlide 3- 4 Figure 3.3(a) Superior and Inferior Goods

5. Copyright © 2001 Addison Wesley LongmanSlide 3- 5 Figure 3.3(b) Superior and Inferior Goods

6. Copyright © 2001 Addison Wesley LongmanSlide 3- 6 Figure 3.4(a) Income and Tastes

7. Copyright © 2001 Addison Wesley LongmanSlide 3- 7 Figure 3.4(b) Income and Tastes

8. Copyright © 2001 Addison Wesley LongmanSlide 3- 8 Figure 3.5 Varying Prices

9. Copyright © 2001 Addison Wesley LongmanSlide 3- 9 Figure 3.6 Price-Consumption Path

10. Copyright © 2001 Addison Wesley LongmanSlide 3- 10 Figure 3.7 Demand Curve for Good 1

11. Copyright © 2001 Addison Wesley LongmanSlide 3- 11 Figure 3.8(a) Nonconvex Preferences and Demand

12. Copyright © 2001 Addison Wesley LongmanSlide 3- 12 Figure 3.8(b) Nonconvex Preferences and Demand

13. Copyright © 2001 Addison Wesley LongmanSlide 3- 13 Figure 3.9(a) Nonstrictly Convex Indifference Curves and Demand

14. Copyright © 2001 Addison Wesley LongmanSlide 3- 14 Figure 3.9(b) Nonstrictly Convex Indifference Curves and Demand

15. Copyright © 2001 Addison Wesley LongmanSlide 3- 15 Figure 3.10(a) Income Effects, Substitution Effects, and Demand

16. Copyright © 2001 Addison Wesley LongmanSlide 3- 16 Figure 3.10(b) Income Effects, Substitution Effects, and Demand

17. Copyright © 2001 Addison Wesley LongmanSlide 3- 17 Figure 3.11 Compensating for Price Changes

18. Copyright © 2001 Addison Wesley LongmanSlide 3- 18 Figure 3.12 Income and Substitution Effects Work in Opposite Directions

19. Copyright © 2001 Addison Wesley LongmanSlide 3- 19 Figure 3.13 Giffen Good

20. Copyright © 2001 Addison Wesley LongmanSlide 3- 20 Figure 3.14 Deriving Compensated Demand Curves

21. Copyright © 2001 Addison Wesley LongmanSlide 3- 21 Figure 3.15 Plotting Compensated and Uncompensated Demand Curves

22. Copyright © 2001 Addison Wesley LongmanSlide 3- 22 Figure 3.16(a) Compensated Demands of Rats

23. Copyright © 2001 Addison Wesley LongmanSlide 3- 23 Figure 3.16(b) Compensated Demands of Rats

24. Copyright © 2001 Addison Wesley LongmanSlide 3- 24 Figure 3.17 Compensated Demand Function of Rats

25. Copyright © 2001 Addison Wesley LongmanSlide 3- 25 Figure 3.18 Work and Leisure

26. Copyright © 2001 Addison Wesley LongmanSlide 3- 26 Figure 3.19 Income and Crime

27. Copyright © 2001 Addison Wesley LongmanSlide 3- 27 Figure 3.20 The Paradox of Crime Prevention

28. Copyright © 2001 Addison Wesley LongmanSlide 3- 28 Figure 3.21 Elasticity along a Linear Demand Curve

29. Copyright © 2001 Addison Wesley LongmanSlide 3- 29 Figure 3.22(a) Perfectly Elastic and Perfectly Inelastic Demand Curves

30. Copyright © 2001 Addison Wesley LongmanSlide 3- 30 Figure 3.22(b) Perfectly Elastic and Perfectly Inelastic Demand Curves

31. Copyright © 2001 Addison Wesley LongmanSlide 3- 31 Figure 3.23 The Demand for Nintendo Time

32. Copyright © 2001 Addison Wesley LongmanSlide 3- 32 Figure 3.24 The Multiplication Factor

33. Copyright © 2001 Addison Wesley LongmanSlide 3- 33 Figure 3.25 Ordinal Utility Property

34. Copyright © 2001 Addison Wesley LongmanSlide 3- 34 Figure 3.26 Deriving Market Demand from Individual Demand

35. Copyright © 2001 Addison Wesley LongmanSlide 3- 35 Figure 3.27 Derivation of an Expenditure Function

36. Copyright © 2001 Addison Wesley LongmanSlide 3- 36 Figure 3.28(a) Willingness to Pay and Consumer Surplus

37. Copyright © 2001 Addison Wesley LongmanSlide 3- 37 Figure 3.28(b) Willingness to Pay and Consumer Surplus

38. Copyright © 2001 Addison Wesley LongmanSlide 3- 38 Figure 3.29

39. Copyright © 2001 Addison Wesley LongmanSlide 3- 39 Figure 3.30 Supply and Demand Curves for the Experimental Markets

40. Copyright © 2001 Addison Wesley LongmanSlide 3- 40 Figure 3.31 Exact and Approximate Measures of Consumer Surplus

41. Copyright © 2001 Addison Wesley LongmanSlide 3- 41 Figure 3.32 Change in Consumer Surplus

42. Copyright © 2001 Addison Wesley LongmanSlide 3- 42 Figure 3.33 Price Compensating Variation in Income

43. Copyright © 2001 Addison Wesley LongmanSlide 3- 43 Figure 3.34