MGTA01H3 Lecture Notes - Lecture 1: Economic Surplus, Utility, Efficient-Market Hypothesis
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MGTA01H3 Full Course Notes
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Mgea02 introduction to microeconomics: a mathematical approach. Topic 3 (sept 19 - 25) demand & utility. Coverage: the theory of consumer demand for goods and services. Utility, total utility, marginal utility, and the optimal purchase rule; how these concepts help us understand the negative slope of demand curves. Individual and market demand; shifting of demand curves and moving along them. The concepts of consumer surplus and of producer surplus algebraically and graphically. Market efficiency and the maximization of consumer surplus and producer surplus. Recommended reading: part of chapter 10 the rational consumer (pp. To depict the relationship between individual and market demand curves graphically: to appreciate the effect of shifting demand curves or moving along demand curves on total utility and marginal utility. Do all the check your understanding questions within the parts of the text in the assigned readings. Answers for these are at the back of the textbook.
