BIOC 212 Chapter Notes - Chapter 32: Province Of Potenza, Iphone X, Market Price
17 Aug 2018
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Chapter 3 : consumer behaviour and rational choice. Consumers choose the best bundle of goods they can afford. Theory of consumer behavior: preferences, indifference curve, marginal rate of substitution, utility. 3: theory of consumer behaviour = description of how consumers allocate their incomes among different goods and services to maximize their well-being (utility, consumer behaviour: When a consumer faces a choice between any two bundles of goods, only one of the following is true. The consumer might prefer the rst bundle to the second, or the second bundle to the rst, or be indifferent between the two bundles. Indifference is allowed, but indecision is not: transitivity. Transitivity means that if a consumer prefers bundle a to bundle b and bundle b to bundle. C, then the consumer has to prefer a to c = (a > b, b > c > a > c) Transitivity is normally regarded as necessary for consumer consistency: more is better than less.
