ECON 212 Lecture Notes - Lecture 3: Indifference Curve, Marginal Utility

• School: Queen's University
• Department: Economics
• Course: ECON 212
• Professor: Arthur Stewart

Document Summary

Lecture 03 consumer preference and the concept of utility: How consumer limited restrict their resources ( time an money) Which two combinations the consumer thinks is the most desirable. Preferences are complete if the consumer can rank any two baskets of goods. Preferences are transitive if a consumer who prefers basket a to b, basket b to c also prefers basket a to c. Tells us how consumers rank things, but does not tell us how much a consumer likes one good over the other. Tells us the quantitative information missing from the ordinal ranking. In an exam , there are grades for all the students. For ordinal ranking, the rank of the students will be given. Like who is in the first of the class list, who is the second . For carinal ranking, the rank of the rank of the students will be given as well as the grade of the students.