中国服务贸易现状及问题分析国际经济与贸易专业j07021415施萍萍.pptVIP

Chapter 5 Consumer choices The Benefit Side of Demand Recall: The Law of Demand People do less of what they want to do as the cost of doing it rises The benefit of an activity equals the highest price we’d be willing to pay to pursue it (i.e., the reservation price). As the cost of an activity rises and exceeds the reservation price, less of the activity will be pursued. The difference among needs, wants and demand Needs: minimum requirement to stay alive Wants: “tastes” or “preferences” quality of life living standard satisfaction Demand: Willingness Ability Translating Wants into Demand