chapter_3ConsumerBehavior(微观经济学-华侨大学,Jeff

Chapter3ConsumerBehaviorChapter3:ConsumerBehaviorSlide2TopicstobeDiscussedConsumerPreferencesBudgetConstraintsConsumerChoiceRevealedPreferencesChapter3:ConsumerBehaviorSlide3TopicstobeDiscussedMarginalUtilityandConsumerChoicesCost-of-LivingIndexesChapter3:ConsumerBehaviorSlide4ConsumerBehaviorTwoapplicationsthatillustratetheimportanceoftheeconomictheoryofconsumerbehaviorare:Apple-CinnamonCheeriosTheFoodStampProgram.Chapter3:ConsumerBehaviorSlide5ConsumerBehaviorGeneralMillshadtodeterminehowhighapricetochargeforApple-CinnamonCheeriosbeforeitwenttothemarket.Chapter3:ConsumerBehaviorSlide6ConsumerBehaviorWhenthefoodstampprogramwasestablishedintheearly1960s,thedesignershadtodeterminetowhatextentthefoodstampswouldprovidepeoplewithmorefoodandnotjustsimplysubsidizethefoodtheywouldhaveboughtanyway.Chapter3:ConsumerBehaviorSlide7ConsumerBehaviorThesetwoproblemsrequireanunderstandingoftheeconomictheoryofconsumerbehavior.Chapter3:ConsumerBehaviorSlide8ConsumerBehaviorTherearethreestepsinvolvedinthestudyofconsumerbehavior.1)Wewillstudyconsumerpreferences.Todescribehowandwhypeoplepreferonegoodtoanother.Chapter3:ConsumerBehaviorSlide9ConsumerBehaviorTherearethreestepsinvolvedinthestudyofconsumerbehavior.2)Thenwewillturntobudgetconstraints.Peoplehavelimitedincomes.Chapter3:ConsumerBehaviorSlide10ConsumerBehaviorTherearethreestepsinvolvedinthestudyofconsumerbehavior.3)Finally,wewillcombineconsumerpreferencesandbudgetconstraintstodetermineconsumerchoices.Whatcombinationofgoodswillconsumersbuytomaximizetheirsatisfaction?Chapter3:ConsumerBehaviorSlide11ConsumerPreferencesAmarketbasketisacollectionofoneormorecommodities.Onemarketbasketmaybepreferredoveranothermarketbasketcontainingadifferentcombinationofgoods.MarketBasketsChapter3:ConsumerBehaviorSlide12ConsumerPreferencesThreeBasicAssumptions1)Preferencesarecomplete.2)Preferencesaretransitive.3)Consumersalwaysprefermoreofanygoodtoless.MarketBasketsChapter3:ConsumerBehaviorSlide13ConsumerPreferencesA2030B1050D4020E3040G1020H1040MarketBasketUnitsofFoodUnitsofClothingChapter3:ConsumerBehaviorSlide14ConsumerPreferencesIndifferencecurvesrepresentallcombinationsofmarketbasketsthatprovidethesamelevelofsatisfactiontoaperson.IndifferenceCurvesChapter3:ConsumerBehaviorSlide15TheconsumerprefersAtoallcombinationsinthebluebox,whileallthoseinthepinkboxarepreferredtoA.ConsumerPreferencesFood(unitsperweek)1020304010203040Clothing(unitsperweek)50GAEHBDChapter3:ConsumerBehaviorSlide16U1CombinationB,A,&Dyieldthesamesatisfaction•EispreferredtoU1•U1ispreferredtoH&GConsumerPreferencesFood(unitsperweek)1020304010203040Clothing(unitsperweek)50GDAEHBChapter3:ConsumerBehaviorSlide17ConsumerPreferencesIndifferenceCurvesIndifferencecurvesslopedownwardtotheright.Ifitslopedupwarditwouldviolatetheassumptionthatmoreofanycommodityispreferredtoless.Chapter3:ConsumerBehaviorSlide18ConsumerPreferencesIndifferenceCurvesAnymarketbasketlyingaboveandtotherightofanindifferencecurveispreferredtoanymarketbasketthatliesontheindifferencecurve.Chapter3:ConsumerBehaviorSlide19ConsumerPreferencesAnindifferencemapisasetofindifferencecurvesthatdescribesaperson’spreferencesforallcombinationsoftwocommodities.Eachindifferencecurveinthemapshowsthemarketbasketsamongwhichthepersonisindifferent.IndifferenceMapsChapter3:ConsumerBehaviorSlide20ConsumerPreferencesIndifferenceCurvesFinally,indifferencecurvescannotcross.Thiswouldviolatetheassumptionthatmoreispreferredtoless.Chapter3:ConsumerBehaviorSlide21U2U3ConsumerPreferencesFood(unitsperweek)Clothing(unitsperweek)U1ABDMarketbasketAispreferredtoB.MarketbasketBispreferredtoD.Chapter3:ConsumerBehaviorSlide22U1U2ConsumerPreferencesFood(unitsperweek)Clothing(unitsperweek)ADBTheconsumershouldbeindifferentbetweenA,BandD.However,BcontainsmoreofbothgoodsthanD.IndifferenceCurvesCannotCrossChapter3:ConsumerBehaviorSlide23ABDEG-1-611-4-211Observation:Theamountofclothinggivenupforaunitoffooddecreasesfrom6to1ConsumerPreferencesFood(unitsperweek)Clothing(unitsperweek)23451246810121416Question:Doesthisrelationholdforgivingupfoodtogetclothing?Chapter3:ConsumerBehaviorSlide24ConsumerPreferencesThemarginalrateofsubstitution(MRS)quantifiestheamountofonegoodaconsumerwillgiveuptoobtainmoreofanothergood.Itismeasuredbytheslopeoftheindifferencecurve.MarginalRateofSubstitutionChapter3:ConsumerBehaviorSlide25ConsumerPreferencesFood(unitsperweek)Clothing(unitsperweek)23451246810121416ABDEG-61111-4-2-1MRS=6MRS=2FCMRSChapter3:ConsumerBehaviorSlide26ConsumerPreferencesWewillnowaddafourthassumptionregardingconsumerpreference:Alonganindifferencecurvethereisadiminishingmarginalrateofsubstitution.NotetheMRSforABwas6,whilethatforDEwas2.MarginalRateofSubstitutionChapter3:ConsumerBehaviorSlide27ConsumerPreferencesQuestionWhatarethefirstthreeassumptions?MarginalRateofSubstitutionChapter3:ConsumerBehaviorSlide28ConsumerPreferencesIndifferencecurvesareconvexbecauseasmoreofonegoodisconsumed,aconsumerwouldprefertogiveupfewerunitsofasecondgoodtogetadditionalunitsofthefirstone.Consu