ECON 101 Study Guide - Midterm Guide: Ceteris Paribus, Marginal Likelihood, Econometrics

• School: U of M
• Department: Economics
• Course: ECON 101
• Professor: Ronald C Caldwell

Document Summary

correct, only provide evidence that supports the model: data difficult to collect, not. Given a choice between goods, consumers can make a decision about which is preferred. In reference to people"s/the individual"s preference, not markets. Might opt for something else or view it as more valuable demand schedule demand curve law of demand value total value. Demand curves are downward sloping --> follows from. Postulate 5: the more you have of a good, the less you are willing to pay to obtain another unit of that good. Example: 1st pepsi more valuable than the second because the need is already satisfied for the first one. Marginal value law of diminishing marginal value total expenditure. Consumer surplus: derivative of the total, amount of other goods an individual would be willing to give up in order to consume an incremental unit of a good, total value (tv) = sum of all marginal. Values (mv) of all units of a good consumed.