ECO100Y5 Study Guide - Fall 2018, Comprehensive Term Test Notes - Graph Of A Function, Normal Good, Indifference Curve
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ECO100Y5 Full Course Notes
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Chapter 1: economics in everyday life: economics is a particular way of thinking about human behaviour. It emphasizes certain foundational bases on human behaviour. It different from other social sciences based on its concern for efficiency. It should also make all the simplifying assumptions clear, like if the map shows the world to be flat it should be stated that it"s not that way. The price of a dinner is , and the price of a movie is . Indifference curves (ic: every point on the graph usually represents a consumption bundle. This is an indifference curve as any point on the curve will gave the same utility. U(a) = 10, u(b) = 10 and u(c) = 10. When m goes up: x goes down. Therefore, it is an inferior good: x goes up. Chapter 4 (part that was left out in lecture 3) Income elasticity of demand = % (cid:3041) (cid:3018) (cid:3042)
