lecture3 - Economics 103 Lecture 3 Substitution The Second...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 103 Lecture # 3 Substitution The Second Economic Principle in Economics is Substitution Another way of stating the principle of substitution is: Everyone has their price Or Nothing is sacred Again, like maximization, this assumption is universal … it applies to all things we value. Example of Substitution are everywhere. 1. I drive this: 2. I buy my clothes here I teach here: I’m not the only one who substitutes. I would tell my kids if they didn’t eat this: Other examples:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
There may be social sanctions to substituting: - speeding, driving an unsafe car. - custody and bad marital behavior Sometimes we bind ourselves not to substitute - promise spouse to “forsake all others” - promise parents to study and live off campus. - set your alarm on other side of room. Objections to the Principle of Substitution Not everyone is willing to make the same trade off. - they don’t have to.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

lecture3 - Economics 103 Lecture 3 Substitution The Second...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online