Chap05微观经济学原理.pptVIP

Chapter 5: Demand: The Benefit Side of the Market The Law of Demand People do less of what they want to do as the cost of doing it rises The Law of Demand 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 Law of Demand The Origins of Demand What determines “tastes” or “preferences”? Biology Culture Peer Influences The Law of Demand Economic Naturalist Needs vs. Wants Why does California experience chronic water short