ECON101 Lecture Notes - Demand Curve, Marginal Utility, Macroeconomics

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: Wokia Kumase

Document Summary

Scare resources might be allocated by: market prices, command. Be used in most systems, especially in macroeconomics: majority rule. We simply vote and the government decides what to follow,considering the results of voting: contest. People compete, and the winner gets the prize: first-come,first-served. The first person who approaches the resources gets it. Movie tickets, bus seats, the atm machine, the highway: sharing equality. Pass and law to stress that those resources need to be allocated equally: lottery, personal characteristics. Negatively use of forces to allocate resources: some nations have strong military power and they deprive the resources from other weak nations. What you pay to consume another unit of goods is the willingness(marginal benefit). So the demand curve is also a willingness-to-pay curve. When the y-value is high, then we have high willingness to pay the goods or services. ****so y=total utility/x and the best d and p: at the point when the total.