文档介绍：Chapter 3 Consumer Behavior
Chapter 3
Consumer Behavior
Chapter 3
Chapter 3
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?2005 Pearson Education, Inc3>.
Consumer Preferences – Basic Assumptions
Preferences plete
Consumers can rank market baskets
Preferences are transitive
If they prefer A to B, and B to C, they must prefer A to C
Consumers always prefer more of any good to less
More is better
Chapter 3
Chapter 3
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?2005 Pearson Education, Inc.
The consumer prefers A to binations
in the yellow box, while all those in the pink box are preferred to A.
Indifference Curves:
An Example
Food
10
20
30
40
10
20
30
40
Clothing
50
G
A
E
H
B
D
More is better
Chapter 3
Chapter 3
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?2005 Pearson Education, Inc.
Indifferent between points B, A, & D
E is preferred to points on U1
Points on U1 are preferred to H & G
Indifference Curves:
An Example
Food
10
20
30
40
10
20
30
40
Clothing
50
U1
G
D
A
E
H
B
Indifference curves slope downward to the right
Chapter 3
Chapter 3
*
?2005 Pearson Education, Inc.
U2
U3
Indifference Map
Food
Clothing
U1
A
B
D
Market basket A
is preferred to B.
Market basket B is
preferred to D.
Chapter 3
Chapter 3
*
?2005 Pearson Education, Inc.
Indifference Maps
Food
Clothing
B is preferred to D
A is indifferent to B & D
B must be indifferent to D but that can’t be if B is preferred to D
U1
U1
U2
U2
A
B
D
Chapter 3
Chapter 3
*
?2005 Pearson Education, Inc.
Marginal Rate of Substitution
Food
2
3
4
5
1
Clothing
2
4
6
8
10
12
14
16
A
B
D
E
G
-6
1
1
1
1
-4
-2
-1
MRS = 6
MRS = 2
We measure how a person trades one good for another using the marginal rate of substitution (MRS)
Chapter 3
Chapter 3
*
?2005 Pearson Education, Inc.
Consumer Preferences
Orange Juice
(glasses)
Apple
Juice
(glasses)
2
3
4
1
1
2
3
4
0
Perfect
Substitutes
Chapter 3
Chapter 3
*
?2005 Pearson Education, Inc.
Consumer Preferences
Right Shoes
Left
Shoes
2
3
4