chapter_3ConsumerBehavior(微观经济学华侨大学,Jeff.pptxVIP

Chapter 3Consumer BehaviorChapter 1Topics to be DiscussedConsumer PreferencesBudget ConstraintsConsumer ChoiceRevealed PreferencesChapter 1Topics to be DiscussedMarginal Utility and Consumer ChoicesCost-of-Living IndexesChapter 1Consumer BehaviorTwo applications that illustrate the importance of the economic theory of consumer behavior are:Apple-Cinnamon CheeriosThe Food Stamp Program.Chapter 1Consumer BehaviorGeneral Mills had to determine how high a price to charge for Apple-Cinnamon Cheerios before it went to the market.Chapter 1Consumer BehaviorWhen the food stamp program was established in the early 1960s, the designers had to determine to what extent the food stamps would provide people with more food and not just simply subsidize the food they would have bought anyway.Chapter 1Consumer BehaviorThese two problems require an understanding of the economic theory of consumer behavior.Chapter 1Consumer BehaviorThere are three steps involved in the study of consumer behavior. 1) We will study consumer preferences.To describe how and why people prefer one good to another.Chapter 1Consumer BehaviorThere are three steps involved in the study of consumer behavior. 2) Then we will turn to budget constraints.People have limited incomes.Chapter 1Consumer BehaviorThere are three steps involved in the study of consumer behavior. 3) Finally, we will combine consumer preferences and budget constraints to determine consumer choices.What combination of goods will consumers buy to maximize their satisfaction?Chapter 1Consumer PreferencesMarket BasketsA market basket is a collection of one or more commodities.One market basket may be preferred over another market basket containing a different combination of goods.Chapter 1Consumer PreferencesMarket BasketsThree Basic Assumptions 1) Preferences are complete. 2) Preferences are transitive. 3) Consumers always prefer more of any good to less.Chapter 1Consumer Preferences Market Basket Units of Food Units of Clothing