chapter 3 demand and behavior in markets. copyright © 2001 addison wesley longmanslide 3- 2 figure...
TRANSCRIPT
Chapter 3
Demand and Behaviorin Markets
Copyright © 2001 Addison Wesley Longman
Slide 3- 2
Figure 3.1 Optimal Consumption Bundle
Copyright © 2001 Addison Wesley Longman
Slide 3- 3
Figure 3.2 Income Expansion Path
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Slide 3- 4
Figure 3.3(a) Superior and Inferior Goods
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Slide 3- 5
Figure 3.3(b) Superior and Inferior Goods
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Slide 3- 6
Figure 3.4(a) Income and Tastes
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Slide 3- 7
Figure 3.4(b) Income and Tastes
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Slide 3- 8
Figure 3.5 Varying Prices
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Slide 3- 9
Figure 3.6 Price-Consumption Path
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Figure 3.7 Demand Curve for Good 1
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Slide 3- 11
Figure 3.8(a) Nonconvex Preferences and Demand
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Slide 3- 12
Figure 3.8(b) Nonconvex Preferences and Demand
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Slide 3- 13
Figure 3.9(a) Nonstrictly Convex Indifference Curves and Demand
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Slide 3- 14
Figure 3.9(b) Nonstrictly Convex Indifference Curves and Demand
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Slide 3- 15
Figure 3.10(a) Income Effects, Substitution Effects, and Demand
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Figure 3.10(b) Income Effects, Substitution Effects, and Demand
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Figure 3.11 Compensating
for Price Changes
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Figure 3.12 Income and Substitution Effects Work in Opposite Directions
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Slide 3- 19
Figure 3.13 Giffen Good
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Figure 3.14 Deriving Compensated Demand Curves
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Slide 3- 21
Figure 3.15 Plotting Compensated and Uncompensated Demand Curves
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Figure 3.16(a) Compensated Demands of Rats
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Figure 3.16(b) Compensated Demands of Rats
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Figure 3.17 Compensated Demand Function of Rats
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Figure 3.18 Work and Leisure
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Figure 3.19 Income and Crime
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Slide 3- 27
Figure 3.20 The Paradox of Crime Prevention
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Figure 3.21 Elasticity along a Linear Demand Curve
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Figure 3.22(a) Perfectly Elastic and Perfectly Inelastic Demand Curves
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Figure 3.22(b) Perfectly Elastic and Perfectly Inelastic Demand Curves
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Slide 3- 31
Figure 3.23 The Demand for Nintendo Time
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Figure 3.24 The Multiplication Factor
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Slide 3- 33
Figure 3.25 Ordinal Utility Property
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Figure 3.26 Deriving Market Demand from Individual Demand
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Figure 3.27 Derivation of an Expenditure Function
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Figure 3.28(a) Willingness to Pay and Consumer Surplus
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Figure 3.28(b) Willingness to Pay and Consumer Surplus
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Figure 3.29
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Slide 3- 39
Figure 3.30 Supply and Demand Curves for the Experimental Markets
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Figure 3.31 Exact and Approximate Measures of Consumer Surplus
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Figure 3.32 Change in Consumer Surplus
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Figure 3.33 Price Compensating Variation in Income
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Figure 3.34