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Chapter 7 Utility and Demand Review nisa divides her income of $30 a month
between movies that cost $6 each and soda that costs $3 a six-pack. Lisa's
preferences are described by using the concept of utility: the more movies Lisa
sees in a ...
Chapter 7 Utility and Demand Review nisa divides her income of $30 a month
between movies that cost $6 each and soda that costs $3 a six-pack. Lisa's
preferences are described by using the concept of utility: the more movies Lisa
sees in a ...
˹éÒ 183
If Lisa spends all her income on soda, she can still buy 10 six-packs. In other
words, Lisa's ... A Change in the Price of Soda Let's go back to the original
situation in which movies cost $6 each and soda $3 a six-pack. What happens to
Lisa's ...
If Lisa spends all her income on soda, she can still buy 10 six-packs. In other
words, Lisa's ... A Change in the Price of Soda Let's go back to the original
situation in which movies cost $6 each and soda $3 a six-pack. What happens to
Lisa's ...
˹éÒ 187
Suppose that Lisa drinks 6 six-packs of soda and watches 2 movies (point c in
the figure). What is her marginal rate of substitution at this point? It is calculated
by measuring the magnitude of the slope of the indifference curve at that point.
Suppose that Lisa drinks 6 six-packs of soda and watches 2 movies (point c in
the figure). What is her marginal rate of substitution at this point? It is calculated
by measuring the magnitude of the slope of the indifference curve at that point.
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allocative amount average total cost benefit budget line buyers calculate capital cars change in price Chapter choices competitive consumer surplus consumption cost curve curve shifts decreases demand and supply demand curve economic economists elasticity of demand equal equilibrium example factors of production falls Figure firm's firms graph higher hour household income effect increases indifference curve industry inelastic input interest rate isocost labor Lisa Lisa's long-run lower marginal cost marginal product marginal rate marginal revenue marginal revenue product marker pens million tapes monopoly movies and soda oligopoly opportunity cost output percent perfect competition price of movies production possibility frontier profit quantity bought quantity demanded quantity supplied rate of substitution relationship rent rises sell short-run shown in Fig shows six-packs slope sold supply curve Swanky tapes a week tion total revenue total utility United utility per dollar wage rate wealth workers zero