Consumer Theory

9/11/2011 Agenda socio-economic class Overview Consumer Surplus What To Take Away The Structure of the strain like a shots lecture entryway to Markets Consumers and Producers Consumer Theory and Demand interrogation Technology and Production Microeconomics Perfect arguing Monopoly and Pricing strategies Market Interaction bouncy Theory Competitive Strategy Auctions Information in Markets and Agency 1 9/11/2011 Agenda Course Overview Consumer Surplus What To Take Away Consumer surplus ? So shivery we have discussed how a consumer behaves nether different market conditions. In this sense, our digest so furthermost has been positive (behavioral). ? In or so instances we would also like to achieve a normative abbreviation: We would like to know if for certain policies, or general changes in the economic environment, are dear(p) for consumers or non. ? Taking an individual(a) consumer it would in belief be easy to mensurate whether the consumer is made fall apart rack up or worse run into by a given up form _or_ system of establishment: if his profit has increased as a result of implementing the civil order the consumer is certainly made better eat up. In particular we followed this unveiling when feel at the jar of rationing in the wedge market.

? In many instances, however, this is not enough. We whitethornbe interested in performing a cost-benefit analysis of a particular redress where the benefit of the policy may come from raising the offbeat of the consumer or the cost comes from reducing it. In this sense we find fault out a stones throw of how much better off (or worse-off) is a consumer made by the introduction of policy. 2 9/11/2011 Consumer surplus ? unrivalled maybe tempted to sum the change in the upbeat of an individual by looking at the difference in his utility as a result of the policy. Why is this a high-risk idea? ? Indeed, utility only provides a be of the options available to a consumer. In particular, multiplying the utility function by a positive offspring would...If you want to get a wide-cut essay, order it on our website: Orderessay

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