lectur6-page17

lectur6-page17 - Self Interest Consumers: strive to...

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17 17 Self Interest u Consumers : strive to maximize the amount of satisfaction possible from spending a given amount of money income. (as little as possible!) u Producers : strive to maximize the amount of net income possible from selling commodities at the highest possible price (get as much as possible!) The competition between consumers and producers, let me give you another personal and I hope, practical example. On June 7, 2000, the heating and air conditioning person came to my home to do routine maintenance on our HVAC system. I have a contract with the company to do this twice per year. Well, my wife called me at the office with some bad news. It seems that when Hurricane Floyd hit in September of 1999 and our crawl space flooded a little, the condensate pump burned out. The condensate pump removes the moisture that accumulates on the evaporation coil of your home air conditioning system. You have surely noticed the water dripping from your car or truck after you have been
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