201Spring2011Class1_to_Class2

201Spring2011Class1_to_Class2 - Microeconomics 201, Spring...

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Microeconomics 201, Spring 2011, 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
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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
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This note was uploaded on 05/23/2011 for the course ECON 201 taught by Professor Vandewaal during the Spring '09 term at Waterloo.

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201Spring2011Class1_to_Class2 - Microeconomics 201, Spring...

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