10 理性消费者课程教学课件.pptxVIP

;How consumers choose to spend their income on goods and services Why consumers make choices by maximizing utility, a measure of satisfaction from consumption Why the principle of diminishing marginal utility applies to the consumption of most goods and services How to use marginal analysis to find the optimal consumption bundle What income and substitution effects are;Opportunity Cost and Decisions;;Cassie’s Total Utility and Marginal Utility;The Principle of Diminishing Marginal Utility;Budgets and Optimal Consumption;;Sammy’s Utility from Consumption;Optimal Consumption Choice;Sammy’s Budget and Total Utility;;Spending the Marginal Dollar;Sammy’s Marginal Utility per Dollar;Marginal Utility per Dollar;Optimal Consumption Rule;From Utility to the Demand Curve;Marginal Utility, the Substitution Effect, and the Law of Demand;The Income Effect;Consumers maximize a measure of satisfaction called utility. Each consumer has a utility function that determines the level of total utility generated by his or her consumption bundle, the goods and services that are consumed. A good’s or service’s marginal utility is the additional utility generated by consuming one more unit of the good or service. We usually assume that the principle of diminishing marginal utility holds: consumption of another unit of a good or service yields less additional utility than the previous unit.;A budget constraint limits a consumer’s spending to no more than his or her income. It defines the consumer’s consumption possibilities, the set of all affordable consumption bundles. A consumer who spends all of his or her income will choose a consumption bundle on the budget line. An individual chooses the consumption bundle that maximizes total utility, the optimal consumption bundle. The optimal consumption rule says that at the optimal consumption bundle the marginal utility per dollar spent on each good and service is the same. ;Changes in the price of a good affect the quantity consumed in two pos