This document provides an overview of consumer theory, including demand, utility, and choice. It discusses key concepts such as marginal utility, total utility, the law of diminishing marginal utility, and consumer equilibrium. Specific sections are outlined that will define utility, calculate marginal and total utility, derive the consumer demand curve, and discuss consumer equilibrium when income is constrained. Examples are provided to demonstrate calculating utility tables and deriving indifference curves to find the point of consumer equilibrium.

1. VERBRUIKERS TEORIE: VRAAG, NUT, KEUSE
CONSUMER THEORY: DEMAND, UTILITY,
CHOICE
HOOFSTUK 10 / CHAPTER 10
(§10.1- § 10.5)

2. Bespreek, omskryf,
bereken ...
 Nut
 Grensnut (MU)
 Totale nut (TU)
 Geweegde MU
 Verbruikers ewewig
Lei verbruikers
Vraag kromme af
Voltooi alle tabelle
Discuss, describe,
calculate ...
 Utility
 Marginal Utility
 Total Utility
 Weighted MU
 Consumer Equilibrium
Derive consumer
demand curve
Complete all tables
2
UITKOMSTE / OUTCOMES

3. 10.1 Nut
 Definisie
 Kardinale nut vs. ordinale nut
10.2 Grensnut (MU) & totale nut
(TU)
 Bereken (SG)
 Wet van dalende grensnut
10.3 Verbruikersewewig
 Hoogste nut
 Inkome versperring
 Geweegde grensnut ... NB
10.4 Afleiding van vraagkromme
(individu)
 1 inkome, 2 produkte, P
10.5 Opmerkings
10.1 Utility
 Definition
 Cardinal vs. Ordinal
10.2 Marginal (MU) & Total Utility
(TU)
 Calculate (SG)
 Law of diminishing MU
10.3 Consumer Equilibrium
 Highest Utility
 Income constraint
 Weighted MU ... NB
10.4 Demand Curve (Derived)
 1 Income, 2 Products, P
10.5 Comments 3
UITLEG / LAYOUT

4. Hoofstuk 1
 Keuses & geleentheidskostes
 Verbruik om behoeftes te bevredig
Chapter 1
 Choices vs. Opportunity costs
 Consumption to satisfy needs
4
‘REVIEW’ … VAN/OF
ECON111

5.  DOEL: Behoeftes te bevredigDOEL: Behoeftes te bevredig
 Subjektief
 Kardinaal vs Ordinaal
 Kardinaal = meet
 Ordinaal = orde
OBJECTIVE: Satisfy wantsOBJECTIVE: Satisfy wants
Subjective
Cardinal utility vs. ordinal utility
Cardinal = measure
Ordinal = rank
5
NUT

6. 6
Wet van dalende grensnut
Law of diminishing marginal utility
Q Nut / Utility
1
2
3
4
5
6
7
8

7. Marginale Nut (MU) of
grensnut
 Die addisionele nut uit die verbruik
van een ekstra eenheid
Totale Nut (TU)
 Die som van al die vorige grensnutte
Marginal Utility (MU)
 The additional uitility gained from
consuming one extra unit
Total Utility (TU)
 The sum of all previous marginal
utilities
7
MU & TU MU & TU
MUTU Σ=
Q
TU
MU
∆
∆
=

8. Totale Nut (TU)
 Som van alle grensnut (TU =
ΣMU)
 Word meer met verbruik mits
MU > 0
 Maksimeer by MU = 0
 Neem af mits MU < 0
 Totale nut neem toe teen ‘n
dalende koers
Total Utility (TU)
 Sum of all marginal utilities
(TU = ΣMU)
 Increases with consumption if
MU > 0
 Maximises at MU = 0
 Decreases if MU < 0
 Total utility increases at a
decreasing (slower) rate
8
TOTALE NUT TOTAL
UTILITY

9. TABEL 10-1: MU & TU
Qty piesangs verbruik Grensnut (MU) Totale Nut (TU)
1 50 TU0+MU1=50
2 35 50+35=85
3 29 114
4 18 132
5 12 144
6 6 150
7 2 152
8 0 152
9 -4 148
9

10. GRENSNUT / MARGINAL UTILITY
10
Choccies per week TU
1
2
3
4
5
6
10
25
38
50
59
62
MU = Δ TU / ΔQ
15 = (25-10) ÷ (2-1)
13 = (38-25) ÷ (3-2)
12 = (50-38) ÷ (4-3)
9 = (59-50) ÷ (5-4)
3 = (62-59) ÷ (6-5)

11. Marginale Nut (MU)
 Nut van elke eenheid verbruik
 MU neem af met elke opvolgende
eenheid
 Nut kan negatief wees (MU < 0) …
disutiliteit
 Wet van dalende grensnut
 MUx = TUx+1 – Tux
Geweegde grensnut
 Meet nut ten opsigte van prys
 MUx ÷ Px
Marginal Uitility (MU)
 Utility of each unit consumed
 MU reduces with each additional
unit consumed
 Utility can be negative (MU < 0) …
disutility
 Law of diminishing utility
 MUx = TUx+1 – Tux
Weighted marginal utility
 Utility with respect to price
 MUx ÷ Px
11
WAT HET ONS GESIEN… WHAT DID
WE SEE…

12. 12

13. TABEL 10-2: NATANIEL SE VOORKEURSKAAL
Qty
Goedere / Goods (Inkome/ Income = R12)
Wors @ R1/e Wine @ R3/e Bread @ R2/e
MUw TUw
MUw
MUw TUw
MUw
MUB TUB
MUB
Pw Pw PB
1
2
3
4
5
6
7
8
9
13

14. TABEL 10-2: NATANIEL SE VOORKEURSKAAL
Qty
Goedere / Goods (Inkome/ Income = R12)
Wors @ R1/e Wine @ R3/e Bread @ R2/e
MUw TUw
MUw
MUw TUw
MUw
MUB TUB
MUB
Pw Pw PB
1 54 90 33
2 48 171 60 126
3 144 72 27
4
5
6
7
8
9
14

15. TABEL 10-2: NATANIEL SE VOORKEURSKAAL
Qty
Goedere / Goods (Inkome/ Income = R12)
Wors @ R1/e Wine @ R3/e Bread @ R2/e
MUw TUw
MUw
MUw TUw
MUw
MUB TUB
MUB
Pw Pw PB
1 54 54 54 90 90 30 66 66 33
2 48 102 48 81 171 28 60 126 30
3 42 144 42 72 243 24 54 180 27
4
5
6
7
8
9
15

16. TABEL 10-2: NATANIEL SE VOORKEURSKAAL
Qty
Goedere / Goods (Inkome/ Income = R12)
Wors @ R1/e Wine @ R3/e Bread @ R2/e
MUB TUB
MUB
MUV TUV
MUV
MUR TUR
MUR
PB PV PR
1 54 54 54 90 90 30 66 66 33
2 48 102 48 81 171 28 60 126 30
3 42 144 42 72 243 24 54 180 27
4 36 180 36 63 306 21 48 228 24
5 30 210 30 54 360 18 42 270 21
6 24 234 24 45 405 15 36 306 18
7 18 252 18 36 441 12 30 336 15
8 12 264 12 27 468 9 24 360 12
9 6 270 6 18 486 6 18 378 9
16

17. R
R
v
V
B
B
P
MU
P
MU
P
MU
==
- Must spend total income
- Specific to price and income
level
- Weighted MU must be equal for
all products
17
VERBRUIKERS EWEWIG CONSUMER
EQUILIBRIUM
 Moet totale inkome spandeer
 Is spesifiek tot prys & inkome vlak
 Geweegde MU vir elke produk moet
gelyk wees

19. -Income R10
-2 Products
- Beer
- Hamburger
- What is the best that Ben can do
with his R10????
19

20. TBL 10-4 & 10-5 BEN SE VOORKEUR
Qty
Inkome / Income = R10
Beer @ R2/e Hamburger @ R3/e
MUB TUB
MUB
MUH TUH
MUH
R2 R3
1 30 30 39 39
2 20 50 30 69
3 14 24
4 10 18
5 6 15
20 B
B
A
A
P
MU
P
MU
=

21. TBL 10-4 & 10-5 BEN SE VOORKEUR
Qty
Inkome / Income = R10
Beer @ R2/e Hamburger @ R3/e
MUB TUB
MUB
MUH TUH
MUH
R2 R3
1 30 30 15 39 39 13
2 20 50 10 30 69 10
3 14 64 7 24 93 8
4 10 74 5 18 111 6
5 6 80 3 15 126 5
21 B
B
A
A
P
MU
P
MU
=

22. FIG.10-1: BEN SE VRAAG / BEN’S DEMAND
22

23. TABEL 10-4 & 10-5 BEN SE VOORKEUR
Qty
Inkome / Income = R10
BEER @ R3/e HAMBURGER @ R1/e
MUB TUB
MUB
MUH TUH
MUH
R3 R1
1 39 39 13 30 30 30
2 30 69 10 20 50 20
3 24 93 8 14 64 14
4 18 111 6 10 74 10
5 15 126 5 6 80 6
23B
B
A
A
P
MU
P
MU
=

24. 24
BEN SE BEGROTINGSLYN BUDGET LINE
Chocs@R1
Yogi @ R3
Afsnit by inkome/prys
Point on Axis ... Y/P
QC
QY
4
2
Chocs@R2
Yogi @ R3
Afsnit by inkome/prys
Point on Axis ... Y/P
QC
QY
2
2

25. Bereken
 Grensnut
 Totale nut
 Geweegde grensnut
Vind bekostigbare
kombinasies van
produkte
Wys waar verbruikers
ewewig voorkom
Teken ‘n begrotingslyn
Teken ‘n vraagkromme
deur dit af te lei van die
voorkeur tabel
Calculate
 Marginal utility
 Total utility
 Weighted marginal utility
Find affordable
combinations of
products
Indicate where (combo)
consumer equilibrium
occurs
Draw a budget line
Draw a demand curve
derived from a
preference schedule
25
RECAP

26. Hoofstuk 11
SUPER SUPER NB!!! JY MOET HIER WEES!
WOENSDAG 10 AUG
26