and the Law of Demand
the first time you go through each of these topics you should click on
the following items in sequence.
to the lecture
a quick quiz
of economics must
a correct theory of
that's what we'll try to do here. Our objective in this topic is to understand:
consumer goes about deciding how much of different goods to buy in order
to maximize his or her total satisfaction, given available income.
consumer will tend to buy more of a good when its price is lower and less
when its price is higher.
responsiveness of changes in quantity demanded to changes in price can
be measured, the concept of price elasticity of demand.
of "consumer surplus"
theory of consumer behaviour based on "utility" can be replicated using
"indifference curve analysis".