ECON 104 Lecture Notes - Lecture 2: Homo Economicus, Opportunity Cost, Demand Curve

• School: Simon Fraser University
• Department: Economics
• Course: ECON 104
• Professor: Vasyl Golovetskyy

Document Summary

Study of behaviour , or even better to think as study of choice . Of cial de nition: study of allocating scarce resources to achieve some goals . An art of taking common sense and making it incomprehensible. We want to think about stuff so we have to experiment to know if it works. A model of the person is homo economicus, homo economicial are maximizers. Value is what you are willing to give up in order to obtain it. On margin is for 1 additional unit. The more you have of something the less valuable an additional unit is. Price is what you have to give up (usually in dollars) , it is different from value. Opportunity cost: what you have to give up in order to obtain it (it can be anything like time or better things to do)