• Lotteries and expected utility • Risk aversion • Metric • Subjective probability theory

• WA and demand law • From preferences to utility • Utility maximization • Expenditure minimization

– Consumer’s surplus – Aggregation – Representation consumer

– Integrability – Aggregation across goods

Preference and rationality The rule of choice Budget Demand function WA and demanded law

▪ Content: • Definitions • Properties of cost function • WACM • Some forms of cost functions

– Some definition – Isoprofit curve – Demand function and it’s properties – supply function and it’s properties – Profit function and it’s properties

– Consumer’s surplus – Aggregation – Representation consumer

– Integrability – Aggregation across goods

Preference and rationality The rule of choice Budget Demand function WA and demanded law