Goods X and Y are Compliments while goods X and Z are substitutes. If the supply of good X increases: Substitutes are goods that compete with one another or can be substituted…

ECON 3070 Intermediate Microeconomic Theory Practice Multiple-Choice Questions Utility and Choice 1. As long as the principle of diminishing marginal utility is operating,…

1. PREFERENCES AND UTILITY Fundamental Problem of Micro-Economics: satisfying unlimited wants with scarce resourcesWhat a consumer wants (preferences) =>What a consumer…

Slide 1Possibilities, Preferences, and Choices CHAPTER 8 Slide 2 After studying this chapter you will be able to Describe a households budget line and show how it changes…

Slide 1Slide 1Copyright © 2004 McGraw-Hill Ryerson Limited Chapter 3 Rational Consumer Choice Slide 2 Slide 2Copyright © 2004 McGraw-Hill Ryerson Limited FIGURE 3-1 Two…

Slide 1Optimal Contracts under Adverse Selection When principals compete for agents Slide 2 How is this different from the previous model? In the previous model, we studied…

Slide 1Lectures in Microeconomics-Charles W. Upton Composite Goods Slide 2 Apples and Bananas arent Everything What happens if there are more than two goods? Slide 3 Composite…

Slide 1ECON 100 Tutorial: Week 4 www.lancaster.ac.uk/postgrad/alia10/ [email protected] office hours: 3:45PM to 4:45PM tuesday LUMS C85 Slide 2 Outline for this weeks…

Review of the previous lecture A consumerâs budget constraint shows the possible combinations of different goods he can buy given his income and the prices of the goods.…

Slide 1Chapter 3 McGraw-Hill/IrwinCopyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved. Slide 2 Rational Consumer Choice 3-2 Slide 3 3-3 Chapter Outline…