ECON101 Lecture 10: Week 4 / Feb 3

• School: University of Alberta
• Department: Economics
• Course: ECON101
• Professor: Gordon Lee

Document Summary

Week 4/ feb. 3, 2017: preferences, consumer equilibrium. Would even take forever to choose what they prefer!) (consumers might not know even what to pick at all, so chooses randomly. ) an idk option! Bounded rationality - you make rational choices w/in the info set that you have, then you experience that. If a consumer prefers bundle x to bundle y, and prefers bundle y to z, then the consumer must prefer bundle x to bundle z. Adult consumers however are good with this! (this assumption won"t hold w/groups. Assumption 3: non-satiation / the greedy consumer assumption. Ceteris paribus, more of a commodity is preferred than less of it. Consumers always want more! (not always true in the real world though) ie: when you"re given more cheeseburgers, you"ll eventually won"t want it anymore. Utility = the satisfaction, happiness, or need ful llment that consumers receive from the goods & services they consume. (how happy did that choice make you?)