201Winter2010Class2b

201Winter2010Class2b - Microeconomics 201, Winter 2010,...

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

View Full Document Right Arrow Icon
Microeconomics 201, Winter 2010, University of Waterloo Class 1: Behavior is Optimization See Slides for Class 1 (the slides will appear in UW-ACE later this week). Class 2: Marginal Analysis as a Solution to the Optimization Principle Example 1: Willingness to pay Joe is asked how much he is willing to pay 1,2,3,4 and 5 Soda cans: $4 for 1 Soda can $7 for 2 Soda cans $9 for 3 Soda cans $10 for 4 Soda cans $10 for 5 Soda cans N Soda cans in terms of money. FIGURE 2.1 HERE Q. How many Soda cans will Joe buy if the price of a Soda can is $2.50? 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
FIGURE 2.2 HERE Joe±s marginal willingness to pay schedule for Soda cans is $4 for 1st Soda can $3 for 2nd Soda can $2 for 3rd Soda can $1 for 4th Soda cans $0 for 5th Soda cans N th Soda can in terms of money. FIGURE 2.3 HERE cost. 1
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.

This note was uploaded on 04/07/2010 for the course ECONOMIC 201 taught by Professor Mikko during the Winter '10 term at Waterloo.

Page1 / 6

201Winter2010Class2b - Microeconomics 201, Winter 2010,...

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