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Ec4004 Economics For Business, Lecture2, Choice and Utility
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Ec4004 Economics For Business, Lecture2, Choice and Utility

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Transcript

  • 1. EC4004 Lecture 2 Utility & Choice
  • 2. Yesterday Introduction to the Course
  • 3. Today Utility & Choice
  • 4. We can represent individual choices amongst competing alternatives using indifference curves & budget constraints
  • 5. Volunteers Frank Mackey Emmett McDonagh
  • 6. Utility Utility is the satisfaction a person receives from their economic activities.
  • 7. Assumptions • Ceteris Paribus (holding things constant) • Utility Function
  • 8. Function Set B Set A
  • 9. Assumptions about Preferences Transitivity Completeness More Preferred to Less
  • 10. Diminishing Marginal Utility: Demo