Overview

This week finalize our discussions of decision-making and turn to consumers specifically. With the understanding that individuals often seek to equate the marginal benefits and costs of a decision, we focus on how to quantify benefits to consumers in Chapter 10. By the end of the chapter, the hope is that we can explicitly link our ideas of satisfaction and happiness to develop a model of quantity demanded. More specifically, what determines the quantity we ultimately will be willing and able to purchase? A basic model of utility will help us answer this question as we take a seemingly odd measure and still glean something important from it regarding consumer behavior.

Learning Outcomes

By the end of this week, you will be able to:

Understand what it means when decisions are made "at the margin."
Define and interpret the economic concept of utility.
Understand the importance of the Principle of Diminishing Marginal Utility.
Relate utility directly to the demand curve of an individual.

Activities

Attend class on Tuesday and Thursday.
Review the notes for Chapter 9 and 10 in the Full Notes under Course Information.
Prepare for Exam 2 (Chapters 5-7, 9).

Assessments

Due Friday:
- Exam 2 (Chapters 5-7, 9)
Due Sunday:
- Chapter 9 Quiz/Questions