Class Notes (836,324)
Canada (509,733)
Brock University (12,091)
Economics (200)
ECON 2P21 (3)
Lecture

Lecture notes 7.pdf

29 Pages
151 Views
Unlock Document

Department
Economics
Course
ECON 2P21
Professor
Katerina Koka
Semester
Winter

Description
7    otes Choice Lecture           that . the  s  t  hoice in  re err d   most  undle  ositsate  ationality  vai onstitute  hose  refd?red behavioralchoices   from  mostocate     ld  Ecconnoommi ic  he  et  rincipal  vailable ie . hi The acalternaseite c • • • 1 x  hoice Constrained   x2 Raatonnall 1 x  hoice  onstrained Afunbls x Raattionnaall 1 x  hoice  onstrained Afunbls x Raattionnaall 1 x Choice   preferred   Morendles Constrained   Afbddlse x2 Raattionnaall x  hoice preferred   Mobundes  onstrained Afbunbls x2 Raattiionnaall Choice x   x1 Constrained   * Raattionaall x Choice x1   most    s ffordable 2) 1,x (x pfuree. x Constrained   2 2 Raat tionna all x      al he  s at  y  hoice  undle .  EMAND denoted .   p  e 1  ffordable il*(p  udget    onstrainedDINARY  nd  nd  referred  em,nds prices ,  os onsumer’s1 Raationnaall 1(p ThethegiveOrdinary • • is     budget    hoice  he  emanded  hen 0he $m     *2 .    osts  onstranded x)   1x   *  NTE xOR  1  s Raationnaall  uying Whheen ff exhausted. • • x1  hoice  he  nterior. *) *).austs *,x *,x (x (xbudget x  onstrained x2 x2 Raat tion naall Choice  . x    h*2 p2 *  nt*)x1r.ts *) 2   2 (xx (x (a)budget; x1  onstrained * x x2 Ra attiionna all Choice x1   .  ndiff.    he q alset  f 2) he  nter1o f *) loat 2  he   loconstraint. (x (b)curve x  onstrained * x x Ra attiion na all    ‐  ur*2. *,x (x Choice     constraint,    ndifference the qual  onditio s: budget *      re  wo isha2ste he*) 2 Constrained    f  lo*,x   * the x  atisfiex   *)  udgpt  lo nd 2  he  he,2 Raattionnaall /1 (x (a) (b)p containing • • •    ocate  o  emand s ?  e a2d , Ordinary 1    n ivention this    or  an2 Coomp puutingg Howx •   a  ‐ ‐oouglas l.  obb has  em xamp ab as = l  onsumer 12 2  rdDougy (, ) ‐  he Ux x x x bbb that Co   Computing Suppreferences. •   a  ‐ ‐oouglas l.  obb b2 − 1  emands as ab a 1 a
More Less

Related notes for ECON 2P21

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit