Consumer Theory

9/11/2011 Agenda category Overview Consumer redundancy What To accommodate Away The Structure of the Course todays welt Introduction to Markets Consumers and Producers Consumer Theory and Demand doubtfulness Technology and employment Microstintings Perfect competition Monopoly and Pricing strategies Market Interaction merry Theory Competitive Strategy Auctions In changeation in Markets and chest 1 9/11/2011 Agenda Course Overview Consumer Surplus What To Take Away Consumer surplus ? So cold we nonplus discussed how a consumer behaves chthonian different market conditions. In this sense, our abstract so far has been compulsory (behavioral). ? In some instances we would as well as analogous to perform a normative analysis: We would like to know if sure policies, or general changes in the economic environment, are dear(p) for consumers or not. ? Taking an individual(a) consumer it would in principle be easy to assess whether the consumer is made better off or worse off by a given form _or_ system of government: if his utility has increased as a result of implementing the polity the consumer is certainly made better off. In particular we followed this entree when looking at the impact of limit in the gun market.

? In many instances, however, this is not enough. We mayhap interested in performing a cost-benefit analysis of a particular insurance where the benefit of the policy may take from raising the offbeat of the consumer or the cost comes from reducing it. In this sense we pick out a measure of how more than better off (or worse-off) is a consumer made by the grounding of policy. 2 9/11/2011 Consumer surplus ? ! unrivalled perchance tempted to measure the change in the well-being of an individual by looking at the difference in his utility as a result of the policy. Why is this a high-risk vagary? ? Indeed, utility only provides a ranking of the options available to a consumer. In particular, multiplying the utility function by a positive number would...If you want to get a wide-cut essay, recite it on our website: OrderEssay.net

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