Slide 1Preferences Slide 2 Rationality in Economics u Behavioral Postulate: A decisionmaker always chooses its most preferred alternative from its set of available alternatives.…

1. Chapter Three Preferences 2. Rationality in Economics Behavioral Postulate: A decisionmaker always chooses its most preferred alternative from its set of available alternatives.…

1. THEORY OF CONSUMER DEMAND 2.  Its a want backed by willingness to pay 3. • The branch of economics devoted to the study of consumerbehavior• Applies to decisions…

Slide 1Course: Microeconomics Text: Varian’s Intermediate Microeconomics 1 Slide 2  Last chapter we talk about what is affordable or feasible to consumers.  This…

Slide 1 Tastes/Preferences Indifference Curves Slide 2 Rationality in Economics u Rationality Behavioral Postulate: “Rational Economic Man” The decision-maker chooses…

Preferences Molly W. Dahl Georgetown University Econ 101 â Spring 2009 Rationality in Economics Behavioral Assumption: A decisionmaker always chooses the most preferred…

Chapter 3 Preferences Introduction The economic model of consumer behavior is very simple: people choose the best things they can afford. The last chapter was devoted to…