bio notes

bio notes - Biology Notes December 2, 2007 Chapter 12: DNA...

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Decision Making/ Consumer Theory Benefits > Cost mB = mC Benefits < Cost Consumer Theory - It makes us feel good Max utility (satisfaction, happiness, well being) “More is preferred to less- if it is worth doing- it is worth doing in excess.” SUBJECT TO: Budget Quanity is a function of price- q=f(p) - High prices tell consumers to buy less. -***The role of price is to make sure that product is available for those who are Willing and able to buy it- rational device -Price signal either pay higher or find another alternative for consumers -High prices tell producers make more. Diminishing Marginal Utility The idea of one more to achieve satisfaction Change in DEMAND vs. change in QUANITY demanded Shifting of the demand curve movement along the demand curve ***Own price is the ONLY WAY to change quantity demanded Own Price 1. Direction- Inverse relationship between Price and Quantity 2. Magnitude- Price responsiveness a. As price decreases, quantity increases. A small change in price can cause a drastic change in quantity. An example is a sale item, which
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bio notes - Biology Notes December 2, 2007 Chapter 12: DNA...

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