Class Notes (1,100,000)
CA (630,000)
McMaster (50,000)
ECON (2,000)
ECON 1B03 (700)
Lecture 1

ECON 1B03 Lecture 1: ECON 1B03- Week 12 Module 5


Department
Economics
Course Code
ECON 1B03
Professor
Hannah Holmes
Lecture
1

This preview shows half of the first page. to view the full 2 pages of the document.
ECON 1B03- Week 12 November 20, 2018
Module 5
Unit 13.5
Consumer Theory: Consumer Preferences
Consumer Preferences
Mickey can have various affordable combinations of hockey games and basketball
games per week that would make him equally satisfied,
i.e., give him the same TU.
For instance, 1 basketball and 3 hockey games, or 4 hockey games and 2 basketball
games or 3 basketball and 1 hockey game are all combos that may give him a TU of say,
47.
- Mickey would be indifferent as to which
combo he had.
The combos that all yield the same TU are given by a utility function.
We can graph these combos as indifference curves, ICs.
Every point on an IC has the same TU as every other point on the same curve.
Higher curves mean more goods in a combo and therefore greater total utility.
You're Reading a Preview

Unlock to view full version