econ101w0704 - Introductory Economics Economics 101-300...

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(c) Sherrie A. Kossoudji Introductory Economics Economics 101--300 Lecture # 4 Sherrie A. Kossoudji If you print the preliminary version of these slides before class, please be aware that they are likely to change right up to class time.
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(c) Sherrie A. Kossoudji Please remember that reading these slides does not substitute for attending class. These slides are merely outline guides for what is discussed during the lecture.
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(c) Sherrie A. Kossoudji Today’s Class Brief Bits of Business. How do people make economic decisions? Principle concepts: utility, diminishing marginal utility, income and substitution effects Principle tools: budget constraint, utility maximization practice problem
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(c) Sherrie A. Kossoudji GSI Office Hours GSI Physical Web Andres (302, 303) Th 1-2 pm room 104 Thursday Erik (301, 306) Th 3-4 Tuesday Laura (305, 307) Monday Seb (308) M 2-3 Wednesday Dan (304, 309) Sunday Office hours will be MOSTLY be in 102 Lorch Hall. Talk to your GSI to get the specific location. We will try to update you where possible. Remember, you can attend ANY GSI’s office hours to get help.
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Schedule: Week 3 WEEK 3: WEEK OF JANUARY 15TH Lecture #: 4-5 Discussion #: 2 Anderson: Chapter 9 Subjects/Concepts: Utility, budgets and optimization, demand The production function, costs, long run and short run Readings: This week: Next week: KW Chapter 10, KW Chapter 8 KW Chapter 3 Homework: Graded: Ungraded: None Aplia, Chapter 2, problem set II, Chapter 7 problem set II, Chapter 10, problem set I, Chapter 8, problem set I Section Quizzes: None Exams: None Other Important Information: Syllabus Contract due: January 19th, by 11:00 pm Turn in under assignments section on CTools web site
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(c) Sherrie A. Kossoudji The Syllabus Contract Assignment Discussion group assignments should be complete in CTools. If you are newly registered in the class, or you do NOT see “syllabus contract” in assignments, please let me know by email today. Please include your discussion section number. The syllabus contract is due on January 19 th by 11pm. Please make sure to give yourself a cushion in case there is a computer problem. Don’t forget that late assignments are not accepted.
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(c) Sherrie A. Kossoudji The future value of today’s money Money saved today is worth more in the future Pick a relevant time period (like a year, a month, a day). The interest is compounded once during that time period. Determine the price of money (the interest rate, r) Multiply today’s money by 1+r, to find the future value of money- - that’s how much money there will be at the end of the relevant time period. 5.5% is rate interest the if year one in $1055 worth be l today wil $1000 $1055 .055) (1 * $1000 year one in $ ) 1 ( * today $ = + = + Y r X
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(c) Sherrie A. Kossoudji The present value of tomorrow’s money Money acquired in the future is worth less today Pick a relevant time period (like a year, a month, a day). The interest rate is compounded once during that time period.
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This note was uploaded on 04/04/2008 for the course ECON 101 taught by Professor Gerson during the Winter '08 term at University of Michigan.

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econ101w0704 - Introductory Economics Economics 101-300...

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