ECSENOMICS Chapter 5 Demand and Consumer Behavior McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 5 Demand and Consumer Behavior
ECSENOMICS The Law of Diminishing Marginal utili T37 Figure 5 (a)Total Utility (b) Marginal Utility 5. 5 McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. T-37 Figure 5-1 The Law of Diminishing Marginal Utility
ECSENOMICS 1 Demand Curve Shifts with Changes t in Income or in Other Goods' Prices T38 Figure 5-3 DD D A D 0 Quantity McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Demand Curve Shifts with Changes in Income or in Other Goods’ Prices T-38 Figure 5-3
ECSENOMICS Demand for Addictive Substances y Hard-Core Users T-39 Figure 5-4 B s'(illegal drugs) s(legal drugs) P D Quantity of addictive substance McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Demand for Addictive Substances by Hard-Core Users T-39 Figure 5-4
ECSENOMICS Demand for Addictive Substances by Casual Users T40 Figure 5-5 s'(illegal drugs) illegal S(legal drugs) F G Quantity of addictive substance McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Demand for Addictive Substances by Casual Users T-40 Figure 5-5
ECSENOMICS Because of Diminishing Marginal Utility, Consumer's Satisfaction Exceeds What Is Paid T41 Figure 5-6 Consumer Surplus for an Individual Consumer's demand 6 curve for water :5 5BE 3 Price of water 3456789 Quantity of water McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Because of Diminishing Marginal Utility, Consumer’s Satisfaction Exceeds What Is Paid T-41 Figure 5-6
ECSENOMICS Total Consumer Surplus Is the Area Under to the Demand Curve and Above the Price Line 142 Figure 5-7 Consumer Surplus for a Market R 9只 98765 D Price of Consumer water surplus Total purchases Quantity of water McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Total Consumer Surplus Is the Area Under the Demand Curve and Above the Price Line T-42 Figure 5-7
