ECO105Y1 Lecture Notes - Lecture 3: Marginal Utility, Demand Curve, Gift Card
Document Summary
Quiz 1 (with quiz zero and study plan mastery points prerequisites) due saturday oct 1. Post economics media stories that interest you ( itunes gift card draw oct 3) Class experiment on spending, as the price went up for a cookie, the quantity of people wanting it went down. Your willingness to buy a product or service depends on your ability to pay, comparative benefits and costs, and the availability of substitutes. Consumer"s willingness and ability to pay for a particular product or service (willingness and ability to pay) For any choice, what you are willing to pay or give up depends on. Key 2 state, count only additional benefits and additional costs. additional benefits mean marginal benefits-not total benefits-and marginal benefits change the circumstances. Willingness to pay depends on marginal benefit, not total benefit. Price is benefits with marginal benefit, not cordial benefit. The amount you actually plan to buy at a given price (quantity demand vs demand,
