Class Notes (838,182)
Canada (510,736)
Economics (219)
ECON 1010 (102)
Lecture 45

ECON 1010 Lecture 45: Lecture 45
Premium

3 Pages
22 Views
Unlock Document

Department
Economics
Course
ECON 1010
Professor
Laura K.Brown
Semester
Spring

Description
o982 Principles of Microeconomics 9/6/2013 11:26:00 AM CHAPTER 21 – The Theory of Consumer Choice General Equilibrium Analysis: 1. Total utility: consumer benefit for all transactions (want to maximize) 2. Marginal utility: benefit to consumers for consuming an addition unit of something (want to maximize) o Marginal – small, incremental increase (added benefit) 3. Relationship between marginal utility of things and our consumption of things 4. Law of diminishing marginal utility: as we consume more of something, the amount of utility we are getting is decreasing – negative relationship The Budget Constraint: What the Consumer Can Afford: 1. Most people would like to increase the quantity or quality of the goods they consume 2. People consume less than they desire because their spending is constrained or limited by their income 3. Budget constraint: the limit on the consumption bundles that a consumer can afford 4. The slope of the budget constraint mea
More Less

Related notes for ECON 1010

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