815经济学综合电子版微观英文chapter consumer behavior.pptx

Chapter 3Consumer BehaviorTopics to be DiscussedConsumer PreferencesBudget ConstraintsConsumer ChoiceRevealed PreferencesChapter 3: Consumer BehaviorSlide Topics to be DiscussedMarginal Utility and Consumer ChoicesCost-of-Living IndexesChapter 3: Consumer BehaviorSlide Consumer BehaviorTwo applications that illustrate the importance of the economic theory of consumer behavior are:Apple-Cinnamon CheeriosThe Food Stamp Program.Chapter 3: Consumer BehaviorSlide Consumer BehaviorGeneral Mills had to determine how high a price to charge for Apple-Cinnamon Cheerios before it went to the market.Chapter 3: Consumer BehaviorSlide Consumer BehaviorWhen the food stamp program was established in the early 1960s, the designers had to determine to what extent the food stamps would provide people with more food and not just simply subsidize the food they would have bought anyway.Chapter 3: Consumer BehaviorSlide Consumer BehaviorThese two problems require an understanding of the economic theory of consumer behavior.Chapter 3: Consumer BehaviorSlide Consumer BehaviorThere are three steps involved in the study of consumer behavior. 1) We will study consumer preferences.To describe how and why people prefer one good to another.Chapter 3: Consumer BehaviorSlide Consumer BehaviorThere are three steps involved in the study of consumer behavior. 2) Then we will turn to budget constraints.People have limited incomes.Chapter 3: Consumer BehaviorSlide Consumer BehaviorThere are three steps involved in the study of consumer behavior. 3) Finally, we will combine consumer preferences and budget constraints to determine consumer choices.What combination of goods will consumers buy to maximize their satisfaction?Chapter 3: Consumer BehaviorSlide Consumer PreferencesMarket BasketsA market basket is a collection of one or more commodities.One market basket may be preferred over another market basket containing a different combination of goods.Chapter 3: Consumer BehaviorSlide Consumer Pref