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Lecture 10 October 7 - Todays agenda Consumer choice Budget lines and budget sets Preferences First Exam Approximate letter-grade equivalents A 81

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Today’s agenda Consumer choice Budget lines and budget sets Preferences
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First Exam Approximate letter-grade equivalents A 81 – 100 B+ 75 – 80 B 66 – 74 C+ 62 – 65.5 C 52.5 – 61 D 46 – 52 F below 46
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Where we’ve been and where we’re headed. .. First phase of the course: Introduction to supply and demand Brief look at efficiency of markets and potential for market failure Second phase: Behind the demand and supply curves Relate them to optimizing behavior by consumers and firms in an equilibrium model Explain the negative slope of demand curves Explain the positive slope of supply curves
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Goals of the next two classes Explain the “Law of Demand” the inverse relationship between P and Q D Introduce utility and indifference curves geometric way to describe preferences useful here and later in welfare economics
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From individual to market demand $/Q Q $/Q Q $/Q Q Consumer 1 Consumer 2 Market demand
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From individual to market demand $/Q Q $/Q Q $/Q Q Consumer 1 Consumer 2 Market demand
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From individual to market demand $/Q Q $/Q Q $/Q Q P 1 ac Consumer 1 Consumer 2 Market demand
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From individual to market demand $/Q Q $/Q Q $/Q Q P 1 P 2 ab c d Consumer 1 Consumer 2 Market demand
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From individual to market demand $/Q Q $/Q Q $/Q Q P 1 P 2 ab c d a+c Consumer 1 Consumer 2 Market demand
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From individual to market demand $/Q Q $/Q Q $/Q Q P 1 P 2 ab c d a+c b+d Consumer 1 Consumer 2 Market demand
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From individual to market demand $/Q Q $/Q Q $/Q Q P 1 P 2 ab c d a+c b+d Consumer 1 Consumer 2 Market demand
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From individual to market demand $/Q Q $/Q Q $/Q Q P 1 P 2 ab c d a+c b+d Consumer 1 Consumer 2 Market demand Horizontal summation of demand curves
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Basic hypotheses
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This note was uploaded on 11/10/2011 for the course ECON 220:102 taught by Professor Rubin during the Fall '11 term at Rutgers.

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Lecture 10 October 7 - Todays agenda Consumer choice Budget lines and budget sets Preferences First Exam Approximate letter-grade equivalents A 81

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