ECON269 Lecture Notes - Monopolistic Competition, Nash Equilibrium, Externality
1 Jun 2014
School
Department
Course
Professor
Document Summary
Intd 225 sept 12: economics and the environment, review of economics concepts. Inputs from the environment are not consumed but rather transformed (a) raw materials. ---> production -----> final product c ---> consumption (b) waste product (d) waste product. Conversion of energy from one form to another is not completely ef cient => entropy increases. Suggests that there is a limit on the growth that can be based upon renewable energy sources. Need to move to a steady state society. The study of the choices made in allocating scarce environmental resources. As a product price increases (decreases), quantity demanded decreases (increases), ceteris paribus. Utility - the satisfaction that people derive from the consumption of goods and services. The greater is the amount consumed of a commodity, the smaller is the increase in utility from the next unit consumed. Consumer wishes to maximize her/his happiness given her/his level of income.
