Consumer Behaviour
1
,In this chapter,
look for the answers to these questions
§ How do indifference curves represent the consumer’s
preferences?
§ How does the budget constraint represent the choices
a consumer can afford?
§ What determines how a consumer divides her
recourses between two goods?
§ How does the theory of consumer choice explain the
consumer equilibrium.
2
,Introduction
As we know people face tradeoffs.
§ Buying more of one good leaves less income to
buy other goods.
§ Working more hours means more income and
more consumption, but less leisure time.
§ Reducing saving allows more consumption
today but reduces future consumption.
qThis chapter explores how consumers make
choices like these.
3
, 4
1
,In this chapter,
look for the answers to these questions
§ How do indifference curves represent the consumer’s
preferences?
§ How does the budget constraint represent the choices
a consumer can afford?
§ What determines how a consumer divides her
recourses between two goods?
§ How does the theory of consumer choice explain the
consumer equilibrium.
2
,Introduction
As we know people face tradeoffs.
§ Buying more of one good leaves less income to
buy other goods.
§ Working more hours means more income and
more consumption, but less leisure time.
§ Reducing saving allows more consumption
today but reduces future consumption.
qThis chapter explores how consumers make
choices like these.
3
, 4
