1. Lecture 2Utility Analysis of Demand 2. Theory of Demand• Theory of demand explains– Relation ship between commodity demanded and itsprice– Variations in demand•…

Slide 1Copyright © 2012 Pearson Addison-Wesley. All rights reserved. Chapter 20 Consumer Choice Slide 2 Copyright © 2012 Pearson Addison-Wesley. All rights reserved. 20-2…

1. Assumptions of Utility  Rational consumer  Cardinal utility  Divisibility  Independent utility  Diminishing Marginal Utility 2. Concepts of Utility On the…

Slide 1 Chapter 21 - Consumer Choice1 Learning Objectives  Distinguish between total utility and marginal utility  Discuss why marginal utility at first rises but ultimately…

Slide 1 U NIT 2: B ACKGROUND TO D EMAND : T HE T HEORY OF C ONSUMER C HOICE Objectives: Upon completion of this unit students should be able to; Define the concept of utility…

Slide 1 20-1 Chapter 20 – Consumer Choice There have been shifts in air travel away from facilities located in larger metro areas. San Francisco International Airport saw…

The Rational Consumer The Rational Consumer The income and substitution effects have been sacrificed⦠Their definitions are straight forward and in your book Most Relevant…

The Rational Consumer The Rational Consumer The income and substitution effects have been sacrificed⦠Their definitions are straight forward and in your book Most Relevant…