Slide 1Copyright © 2004 McGraw-Hill Ryerson Limited Chapter 3 Rational Consumer Choice.
Three sections Section 1 Discriminatory two-part tariff Section 2 Uniform two-part tariff Section 3 Applications of two-part tariff Volume.
Consumer Surplus ©1999, 2006,2010, 2011 by Peter Berck.
1 Chapter 13 – Taxation and Efficiency Public Finance McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Chapter 3: Consumer Behavior 1 of 37 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 8e. MARGINAL.
Chapter The Theory of Consumer Choice 21. Budget Constraint: What the Consumer can Afford Budget constraint – Limit on the consumption bundles that a.
Week 8 – Economics Theory Consumer Choice. The Theory of Consumer Choice The theory of consumer choice addresses the following questions: –Do all demand.
Chapter 6
1 Chapter 6 From Demand to Welfare. Main Topics Dissecting the effects of a price change Measuring changes in consumer welfare using demand curves 2.
MARGINAL UTILITY AND CONSUMER CHOICE 3.5 ● marginal utility (MU) Additional satisfaction obtained from consuming one additional unit of a good. ● diminishing.
