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INDIFFERENCE ANALYSIS Indifference curvesIndifference curves –constructing an indifference curve –the shape of an indifference curve –diminishing marginal
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Questions 1 & 2 Individual A Perfect 1:1 substitutes x-axis: one particular good – p 1 = 0.8 y-axis: all other goods – money, given that p 2 = 1 M = 120
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Chapter 3 McGraw-Hill/IrwinCopyright © 2010 The McGraw-Hill Companies, Inc. All rights reserved
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Lecture 8 Consumption and Consumer Society. Consumer behavior: The marketing view Why do consumers want what they want? Why do they buy what they buy?
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Indifference Curves Locus of points representing different bundles of two goods, each of which yields the same level of total utility. It is a graphical
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PRESAGE-CTE Seminar MED Programme MED Programme Paris, 22 nd September 2009
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1 Chapter 4 - Consumer Choice People can’t have everything; their choices are always constrained by factors such as time and money. In this chapter we
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Chapter 5: Theory of Consumer Behavior McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved
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INDIFFERENCE CURVES AND UTILITY MAXIMIZATION Indifference curve – A curve that shows combinations of goods which gives the same level of satisfaction to
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