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Consumer Choice

Consumer Choice. Unlimited Wants; Limited Resources. Main Ideas. The market demand is the outcome of decisions made by individual consumers about how to allocate income among competing alternatives. For normal goods, demand will slope down.

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337 views • 22 slides

Applications of Consumer Theory

Applications of Consumer Theory. Derivation of Demand; Income and Substitution Effects; In Kind vs Cash Transfers; Labor/leisure Tradeoff; CPI. Indifference Curves Describe Tastes of Individual Consumer. Derivation of demand. Individual Demand. P Q 2.5 40 5 20 10 10 .

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626 views • 17 slides

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Xn x0 xs - PowerPoint PPT Presentation

Consumer Choice

Applications of Consumer Theory