CB-Utility approach - TermI Problem1 ,Mihiriswillingto...

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Session II -Consumer Behaviour Microeconomics for Managers  Term- I
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Based on his preferences, Mihir is willing to  trade 4 movie tickets for 1 ticket to an IPL   match. If movie tickets cost Rs. 200 each and a  ticket to the IPL match costs Rs.1000, should  Mihir make the trade? Give reasons.  Problem 1:
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CB In Economics teaches-how a  representative   consumer makes  rational  choices in the market  given limited resources.  ‘Rationality’ means consistency and self-interest  maximization.  Main elements Consumer’s preference budget line consumer’s choice (demand theory).  Scope and Objective 
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Utility theory and indifference curve approach  ( Highlight for today ) Characteristics approach ( Next session) What is utility? Mental satisfaction a consumer gets from  consuming a good -subjective in nature, may  change depending on time and place.  Consumer preference: main  approaches
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