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  • Consumer Behaviour Ponts

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    iamdumasacan213
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    This document discusses consumer behavior and how changes in income affect consumption. It introduces indifference curves which map levels of satisfaction from different combinations of goods, and how budget constraints shape consumer choice along indifference curves. The document also explains how normal increases in income lead to demanding greater quantities of goods for greater satisfaction, and how some goods are superior while others are inferior depending on if demand for them increases or decreases with more income.

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    This document discusses consumer behavior and how changes in income affect consumption. It introduces indifference curves which map levels of satisfaction from different combinations of goods, and how budget constraints shape consumer choice along indifference curves. The document also explains how normal increases in income lead to demanding greater quantities of goods for greater satisfaction, and how some goods are superior while others are inferior depending on if demand for them increases or decreases with more income.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    Consumer Behaviour Ponts

    Uploaded by

    iamdumasacan213
    This document discusses consumer behavior and how changes in income affect consumption. It introduces indifference curves which map levels of satisfaction from different combinations of goods, and how budget constraints shape consumer choice along indifference curves. The document also explains how normal increases in income lead to demanding greater quantities of goods for greater satisfaction, and how some goods are superior while others are inferior depending on if demand for them increases or decreases with more income.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Consumer Behaviour, Indifference Curve and Income Changes

    Utility = Satisfaction

    Principle 1 = Completeness

    Principle 2 = More is better than less

    Indifference Curves

    Curves

    Maps

    Principle 3 = Transitive Property

    Can not intersect

    Principle 4 = Law of Diminishing Marginal Utility

    Marginal Rate of Substitution

    Budget Constraints

    Changing Income

    Normal Change discussion

    Demanded Quantity and Greater Satisfaction

    Superior and Inferior Goods

    Changing Prices

    Equilibrium

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