THE BUDGET LINE:What is Attainable... THE BUDGET LINE:What is Attainable... THE BUDGET LINE:What is Attainable... THE BUDGET LINE:What is Attainable... Unattainable THE BUDGET LINE:What
Trang 1Consumer Behavior
x
Trang 3THE BUDGET LINE:
What is Attainable
Trang 4THE BUDGET LINE:
What is Attainable
Trang 5THE BUDGET LINE:
What is Attainable
Trang 6THE BUDGET LINE:
What is Attainable
Trang 7(Unattainable) THE BUDGET LINE:
What is Attainable
Trang 8An In creas
e in in come make s the
purch ase o
f more of eit
her or both items poss
ible
Trang 9Price change s cause
a change in th e quantity demanded of the items
Trang 10nation
Trang 11nation
What is Preferred
Trang 12nation
What is Preferred
Trang 13nation
What is Preferred
Trang 14nation
What is Preferred
Trang 15nation
I 1
INDIFFERENCE CURVES
What is Preferred
Trang 16nation
r inc ome, more of ei
ther or both prod
ucts could rcha sed
INDIFFERENCE CURVES
What is Preferred
Trang 17nation
I 2
I I 3 4
INDIFFERENCE CURVES
What is Preferred
Trang 18nation
ions of indiffer ence ca
n be develo ped for
every incom e
An Indifference
Map
INDIFFERENCE CURVES
What is Preferred
Trang 19nation
Trang 202 (Attainable)
(Unattainable)
Equilibrium occurs when the consumer selects the combination which reaches the highest attainable indifference
I 2
I I 3 4
EQUILIBRIUM AT TANGENCY
Trang 21EQUILIBRIUM AT TANGENCY
Trang 22EQUILIBRIUM AT TANGENCY
Trang 233
By recording the various quantities
DERIVING THE DEMAND CURVE
Price of B
$1.50
1.00
0
DB
Plotting the Points yields the Demand Curve for Product B