ECON 200 Lecture Notes - Lecture 2: Economic Surplus, Lemonade, Forego
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1: q: what are the major postulates of consumer behavior, concept of marginal value & examples. The concept of demand & examples the concept of total value. The theory of consumer behavior identifies two sets of influences on our decisions to purchase various quantities of goods. Arqs : crime rates fell in the 1990s, as compared to the 1970s, because , in the maximization behavior of consumer purchase of a good, we consider a consumer to . There were tougher laws instituted against crimes in the 1990s. Bundle 1: 3 slices of pizza and 1 salad per day. How relevant is the idea of need to consumer choice: marginal value of a good falls as the quantity consumed of the good increases. We cannot measure how much someone likes a good, but we can talk about how much they value a good.
