ConsumerBehavior幻灯片.ppt

Chapter 3;Topics to be Discussed;Consumer Behavior;Consumer Behavior;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences; ;U1;Consumer Preferences;U2;U1;A;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Consumer Preferences;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Line F + 2C = $80;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Budget Constraints;Consumer Choice;Consumer Choice;Recall, the slope of an indifference curve is:;Consumer Choice;Consumer Choice;Consumer Choice;Consumer Choice;U2;Consumer Choice;Consumer Choice;Designing New Automobiles (II);Designing New Automobiles (II);Consumer Choice;Consumer Choice;V;P;T;Consumer Choice;A Corner Solution;Consumer Choice;Consumer Choice;Consumer Choice;Consumer Choice;Consumer Choice; The trust fund shifts the budget line;Revealed Preferences;D;B is preferred to all market baskets in the green area;All market baskets in the pink area preferred to A;Marginal utility measures the additional satisfaction obtained from consuming one additional unit of a good.;Example The marginal utility derived from increasing from 0 to 1 units of food might be 9 Increasing from 1 to 2 might be 7 Increasing from 2 to 3 might be 5 Observation: Marginal utility is diminishing;The principle of diminishing marginal utility states that as more and more of a good is consumed, consuming additional amounts will yield smaller