ECON 1101 Week 5 - ECON 1101 Week 5 Demand: The Benefits...

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Click to edit Master subtitle style 7/28/11 ECON 1101 – Week 5 Demand: The Benefits Side of the Market & Perfectly Competitive Supply 11
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7/28/11 The Law of Demand Marginal Utility Rational Spending Rule Individual and Market Demand curves Consumer Surplus The Law of Supply The Opportunity Cost Outline 22
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7/28/11 33 The Law of Demand The quantity demanded of a good or service in a given time period declines as its price rises and increases as its price falls, ceteris paribus
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7/28/11 44 The Law of Demand The benefit of an activity equals the highest price we’d be willing to pay to pursue it – the reservation price As the cost of an activity rises and exceeds the reservation price, less of the activity will be pursued
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7/28/11 55 Translating Wants into Demand Measuring wants: The concept of utility Utility The satisfaction people derive from their consumption activities Utility maximisation assumption The assumption that people try to allocate their incomes so as to maximise their satisfaction
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7/28/11 66 Marginal Utility The additional utility gained from consuming an additional unit of good in a given period of time
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7/28/11 Marginal Utility 77
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This note was uploaded on 07/28/2011 for the course ECON 1101 taught by Professor Julia during the Three '08 term at University of New South Wales.

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ECON 1101 Week 5 - ECON 1101 Week 5 Demand: The Benefits...

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