Class Notes (836,414)
United States (324,504)
Economics (79)
All (13)
Lecture

Chapter 9 Notes

2 Pages
91 Views
Unlock Document

Department
Economics
Course
ECON 2001.01
Professor
All Professors
Semester
Winter

Description
Chapter 9 Notes *Firms must understand consumer behavior to determine  what strategies are likely to be most effective in selling  their products  9.1 ­Utility: the enjoyment or satisfaction people receive from  consuming goods and services ­How well off you are from consuming a particular  combination of goods and services depends on your tastes  and preferences ­the goal of consumer is to spend available income so as to  maximize utility ­difficult to measure because there is no way to know how  much satisfaction someone receives from consuming a  product ­economists hoped to measure this in utils, but that was a  fail ­Marginal utility: The change in total utility a person  receives from consuming one additional unit of a good or  service ­If you are hungry, the first slice of pizza you eat may give  you 20 utils, the second will give you 16, and so on until  marginal utility diminishes and becomes negative ­Law of Diminishing marginal utility: The principle that  consumers experience diminishing additional satisfaction  as they consume more of a good or service during a given  per
More Less

Related notes for ECON 2001.01

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