Chapter-4.pdf - Chapter 4 CONSUMER CHOICE AND UTILITY MAXIMIZATION Learning Objectives \u2022 Describe a consumer \u2022 De\ufb01ne goods and services \u2022

Chapter-4.pdf - Chapter 4 CONSUMER CHOICE AND UTILITY...

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Chapter 4 CONSUMER CHOICE AND UTILITY MAXIMIZATION
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Learning Objectives: Describe a consumer Define goods and services Differentiate consumer taste and consumer preference Illustrate Maslow’s Hierarchy of Needs Explain the Economics of Satisfaction Define consumer surplus Define marginal rate of substitution(MRS) Explain budget line Explain the importance of utility
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Consumer – is the one who demands and consumes goods and services. Consumer Sovereignty – to determine or dictate what are to be produced since consumers are the ultimate purchasers of goods and services. Consumer Behavior - it involves the use and disposal of products as well as the study of how they are purchased. Consumer Goods – that yield satisfaction directly to any consumer. It is primarily sold for consumption (ex soft drinks, bread, etc.).
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Goods and Services Goods - refers to anything that provides satisfaction to the needs, wants, and desires of the consumer. It is a tangible products.
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