MB MC Lecture13(2005.10.27 Class today Chapter 5 P 11719只 Chapter 5: Demand: The Benefit Side of the Market Slide 1
MB MC Chapter 5: Demand: The Benefit Side of the Market Slide 1 Lecture 13 (2005.10.27) Class today ◼ Chapter 5 P117-128
emand: The Benefit Side of The MArket ICHAPTER MB MC
MB MC Demand: The Benefit Side of The Market
MB MC Overview Chapter 5 presents the material in a way that illustrates the core principle of the textbook, that marginal benefits should equal marginal costs The chapter presents the demand curve as derived from marginal benefits. Chapter 6 presents the supply curve as derived from marginal costs These two chapters provide the details behind the principle that Mc- MB and give students a solid basis for understanding and applying it in a variety of situations Chapter 5: Demand: The Benefit Side of the Market Slide 3
MB MC Chapter 5: Demand: The Benefit Side of the Market Slide 3 Overview ◼ Chapter 5 presents the material in a way that illustrates the core principle of the textbook, that marginal benefits should equal marginal costs. The chapter presents the demand curve as derived from marginal benefits. Chapter 6 presents the supply curve as derived from marginal costs. These two chapters provide the details behind the principle that MC = MB and give students a solid basis for understanding and applying it in a variety of situations
MB MC Overview Chapter 5 develops the idea of utility maximization and the model of consumer choice behind the demand curve. It presents the Rational Spending Rule and explains how changes in the price of substitutes and income affect demand Chapter 5: Demand: The Benefit Side of the Market Slide 4
MB MC Chapter 5: Demand: The Benefit Side of the Market Slide 4 Overview ◼ Chapter 5 develops the idea of utility maximization and the model of consumer choice behind the demand curve. It presents the Rational Spending Rule and explains how changes in the price of substitutes and income affect demand
The law of demand a People do less of what they want to do as the cost of doing it rises P D Q Chapter 5: Demand: The Benefit Side of the Market Slide 5
MB MC Chapter 5: Demand: The Benefit Side of the Market Slide 5 The Law of Demand ◼ People do less of what they want to do as the cost of doing it rises D P Q