 In economic parlance, preference and choice are two distinct but related terms. – I may have desire to buy a particular car, but cannot buy it unless I have economic…

In microeconomic theory, an indifference curve is a graph showing different bundles of goods between which a consumer is indifferent. That is, at each point on the curve,…

Slide 1Praxeology, Supply & Demand for Freedom University By Paul F. Cwik, Ph. D. Mount Olive College & The Foundation for Economic Education Slide 2 What is Economics?…

1. Chapter 5 Marginal Utility and Consumer Choice © 2002 South-Western 2. Economic Principles • Total Utility and Marginal Utility • Law of Diminishing Marginal Utility…

Chapter 1 Economics -Chapter 4 Consumer Theory Lifetime Learning⦠Building Success⦠Towards Globalization Title Date Lifetime Learning⦠Building Success⦠Towards…

1. Assumptions: Consumers will try to get the most value for their money. Consumers’ income are limited. (Face Budget Constraint) Consumers have clear preferences for various…

Consumer’s equilibrium Consumer’s equilibrium By Dr Naheed Sultana Utility. The power of a product to satisfy human wants is called utility The value a consumer places…

Slide 1 Utility and Demand CHAPTER 7 Slide 2 After studying this chapter you will be able to Explain what limits a household’s consumption choices Describe preferences…

Slide 1 Slide 2 Chapter 18 Consumer Choice, Behavior, and Utility Maximization Slide 3 Income and Substitution Effect We have covered this. Price of good goes down… our…

Slide 1 © 2005 Thomson C hapter 5 Marginal Utility and Consumer Choice Slide 2 © 2005 Thomson 2 Gottheil - Principles of Economics, 4e Economic Principles Total utility…