Lecture 7 Economic and demographic determinants of consumer behavior
1. Demand
Neoclassical empirical evidence on employment and production laws as artefact (short version) Marc Lavoie.
MKSE and the Intangibles: puzzling over the ‘service’ economy JC Spender LUSEM & ESADE.
Consumer demand From the optimal choice of a consumer to overall market demand.
Income and Substitution Effects
MKSE and the Intangibles: puzzling over the ‘service’ economy
Income and Substitution Effects. The Law of Demand: y xbxb xaxa xbxb xaxa x * =x(p x,p y,M) U1U1 U2U2 x x px/pypx/py p x /p y p x ’/p y Slope of budget.
Individual and Market Demand. Chapter Outline ©2015 McGraw-Hill Education. All Rights Reserved. 2 The Effects of Changes in the Price The Effects of Changes.
DEMAND The basic law of demand states that as the price of a good falls people will buy more of it. (Certainly Michael O’Leary of RyanAir believes in this.
