Chapter Three Consumer’s Behavior Theory: Further analysis(1) Chapter Four Production and Cost Function Chapter Five Perfect Competitive Market （1）完全竞争市场

Market Equilibrium A market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by sellers

From Individual to Market Demand Functions Think of an economy containing n consumers, denoted by= 1, .. ,n. Consumer is' ordinary demand function for commodity j is

Monetary Measures of Gains-to- Trade You can buy as much rice as you wish at RMB1 per kilogram once you enter the gasoline market. Q: What is the most you would pay to enter the market?

Electronic Commerce Prentice Hall © 2006 2 Learning Objectives 1. Describe the factors that influence consumer behavior online. 2. Understand the decision-making process of consumer purchasing online. 3. Describe how companies are building one-to-one relationships with customers. 4. Explain how personalization is accomplished online. 5. Discuss the issues of e-loyalty and e-trust in EC. 6. Describe consumer market research in EC

Introduction. The problems in this chapter examine some variations on the apartment market described in the text. In most of the problems we work with the true demand curve constructed from the reservation prices of the consumers rather than the “smoothed” demand curve that we used in the text

Structure From Individual to Market DemandFunctions Elasticities Revenue and own-price elasticity ofdemand Marginal revenue and price elasticity

Structure Market environments Market demand for a competitive firm Short-run supply decision Upward sloping MC curve Shut-down condition Long-run supply decision Comparing long-run and short-rundecisions. Producer’s surplus and profits

Content Competitive equilibrium Local analysis Omplete compete market Monopoly

Anything that can be offered to a market for attention, acquisition, use or consumption. Satisfies a want or a need. Includes: –Physical Products –Services –Persons –Places