ECON 1 Lecture 13: ECON 1-Lecture 12-Budget Constraints

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ECON 1 Lecture 11: ECON 1-Lecture 11-Shifts in Demand

ECON 1 Lecture 13: ECON 1-Lecture 12-Budget Constraints

ECON 1 Lecture 14: ECON 1-Lecture 14-Utility and Demand

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Equation: burgers + tacos = . On the line: spend maximum of . Below the line: spend less than . Slope = -0. 5 = -0. 5 px/py = - (price of tacos) / (price of burgers) For each burger don"t consume, can consumer 2 more tacos. Negative: lower one consumption --> increase another consumption. Utility function: assign a number to each bundle --> compare bundles. U(3,2) > u(4,2) --> prefer (3,5) to (4,2) A happy medium: u(2,7) = u(1,12) --> willing to trade 5 burgers for 1 taco. Marginal utility of burgers --> increase for one more burger. Burgers give up to give up one more taco = (mu tacos) / (mu burgers) = Diminishing marginal utility: the more consumed, the less marginal utility. Budget constraint: different combinations of goods and services that consumers can afford with limited budget. Budget line: a graphical representation of budget constraint --> border between those affordable and not.

Related Questions

budget line

marginal utility

complete property of preferences

market demand

consumption bundle

substitution effect

Giffen good

total effect

income effect

transitive property of preferences

indifference curves

utility

the marginal rate of substitution

utility function

1.	_____	The satisfaction or benefit that consumers receive from consuming goods or services.
2.	________________ _	A particular combination of specific quantities of goods or services
3.	________________ _	Consumers can rank all conceivable bundles of goods or services
4.	_____	If A is preferred to B, and B is preferred to C, then A is always preferred to C.
5.	_____	Equation showing a consumerâs perception of the total utility forthcoming from consuming each bundle of goods and services.
6.	_____	A set of consumption bundles each and every one of which provides a consumer with exactly the same level of total utility.
7.	_____	The number of units of Y that must be given up for total utility to remain the same when one more unit of X is consumed.
8.	_____	The addition to total utility attributable to consuming one more unit of a good, holding the consumption of all other goods constant.
9.	_____	The line showing all bundles of goods that can be purchased at given prices if the entire income is spent.
10.	_____	The change in the consumption of a good that would result if the consumer remained on the original indifference curve after the price of the good changes.
11.	_____	The change in consumption of goods results strictly from the change in purchasing power after the price of a good changes.
12.	________________ _	The sum of the substitution and income effects.
13.	_____	A good for which quantity demanded varies directly with price, causing an upward sloping demand curve.
14.	_____	A list of prices and the corresponding quantity consumers are willing and able to purchase at each price.

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ECON 1 Lecture 13: ECON 1-Lecture 12-Budget Constraints

ECON 1 Lecture 11: ECON 1-Lecture 11-Shifts in Demand

ECON 1 Lecture 13: ECON 1-Lecture 12-Budget Constraints

ECON 1 Lecture 14: ECON 1-Lecture 14-Utility and Demand

Document Summary

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