EC4004
               Lecture 2




Utility  Choice
Yesterday


Introduction to the Course
Today


Utility  Choice
We can represent individual
choices amongst competing
alternatives using indifference
curves  budget constraints
Volunteers
Frank Mackey


Emmett McDonagh
Utility


Utility is the satisfaction a
person receives from
their economic activities.
Assumptions


• Ceteris Paribus (holding things constant)
• Utility Function
Function   Set B
Set A
Assumptions
   about
Preferences

Transitivity
Completeness
More Preferred to Less
Diminishing Marginal
       Utility:
       Demo
Ec4004 Economics For Business, Lecture2, Choice and Utility
Ec4004 Economics For Business, Lecture2, Choice and Utility
Ec4004 Economics For Business, Lecture2, Choice and Utility
Ec4004 Economics For Business, Lecture2, Choice and Utility
Ec4004 Economics For Business, Lecture2, Choice and Utility
Ec4004 Economics For Business, Lecture2, Choice and Utility
Ec4004 Economics For Business, Lecture2, Choice and Utility
Ec4004 Economics For Business, Lecture2, Choice and Utility
Upcoming SlideShare
Loading in …5
×

Ec4004 Economics For Business, Lecture2, Choice and Utility

852 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
852
On SlideShare
0
From Embeds
0
Number of Embeds
12
Actions
Shares
0
Downloads
91
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ec4004 Economics For Business, Lecture2, Choice and Utility

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

×