1. In This Lecture…  Concepts of Utility: Cardinal and Ordinal  Law of Diminishing Marginal Utility  Indifference Curve (IC) Analysis : Concept, Properties, MRS…

1. CONCEPTS IN ECONOMICS 2. Definition Definition of the subject comes from the economist Lionel Robbins, who said in 1935 that "Economics is a social science…

Slide 1Fundamentals of Microeconomics Slide 2 Puzzle  Why the consumers are so different?  Consumer preferences  Budget constraints What amount and types of goods…

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 8 UTILITY AND DEMAND Slide 3 © 2012 Pearson Education Slide 4 © 2010 Pearson Education The choices you make as a buyer of goods and services is influenced…

Slide 1 Slide 2 8 UTILITY AND DEMAND Slide 3 © 2012 Pearson Addison-Wesley Slide 4 © 2010 Pearson Addison-Wesley You want Ke$ha’s album, Animal. Will you buy the CD album…

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