ECON 103 Lecture Notes - Broccoli

• School: Simon Fraser University
• Department: Economics
• Course: ECON 103
• Professor: Douglas Allen

Document Summary

What is substitution: everyone is willing to trade some amount of good for another. Again, like maximization, this assumption is universal it applies to all things we valued. What are the examples of substitution in professor"s life: sacrificing a nicer car for lawn mop, teaching in sfu instead of working in rbc, choosing broccoli instead of marite. 3 things to clarify on the principle of substitution: substitution is an act of the will. To be able to pay for something literally means that you have enough income to make the payment, however just because they can pay does not mean they are willing to do so. What are some objections to the principle of substitution: not everyone is willing to trade to make the same trade off. Response: its fine, this means that people hold the meaning of different testes and that is mostly subjective.