Oct. 2 Micro (Unit 1 end Unit 2 beggining)

Oct. 2 Micro (Unit 1 end Unit 2 beggining) - a. Economist...

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Microeconomics 10/2/2007 1. Intro a. Equilibrium i. Market impediments 1. Ceilings 2. Floors 2. Ceilings a. Chronic shortage b. Off market activities c. Winners i. People who get the “rent controlled apartments” d. Losers i. People who don’t get the “rent controlled apartments,” and the Landlord. (sellers) 3. Floors a. Chronic surplus (Labor – Chronic unemployment) b. Winners i. People who get the job c. Losers i. People who don’t get the jobs ii. employers
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Microeconomics 10/2/2007 1. Consumption a. Utility i. Concept 1. Level of satisfaction associated with a consumption activity. 2. Goal a. Maximize your utility subject to your budget constraint. b. Allocate your income in a way that maximizes utility. 3. Alfred Marshall
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Unformatted text preview: a. Economist in the 1890s b. British c. Tried to use the idea of Utils (a way to measure satisfaction) 4. Present a. Measure satisfaction by your willingness to pay ii. Language 1. Willingness to pay 2. Marginal utility a. The level of additional satisfaction gained from the consumption of an additional unit of a good or service. b. What is the additional satisfaction generated by the last unit of consumption? 3. Total Utility a. Indicates the overall satisfaction gained from the consumption of a collection of goods measured by a cumulative willingness to pay. iii. Thought experiment iv. Net marginal utility....
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This essay was uploaded on 04/07/2008 for the course MICROECONO 102 taught by Professor Hilton during the Spring '08 term at Loyola Maryland.

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Oct. 2 Micro (Unit 1 end Unit 2 beggining) - a. Economist...

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