ECON 100A Lecture Notes - Lecture 19: Indifference Curve, C More Entertainment, Convex Preferences
Document Summary
Consumers choose the most preferred bundle from among those available demand. Systematic rankings can be represented by a preference relation ( ) -- at least as good as or weakly prefers . Either a b or b a or both. A b and b a then you are indifferent. A b and not b a then you prefer a. If a is preferred to b and b is preferred to c then a is preferred to c. Math: a b and b c a c. If b has strictly more in all co-ordinates than a: Then b a and not a b (means that b is strictly preferred) (can also write it as b > a) Always assuming that the goods that are represented are the things that you prefer. A good is something that we would like to get more of. A bad is something we would like less of. Not everyone necessarily agrees on good vs bad.
