About This Chapter
Microeconomics & Consumer Behavior - Chapter Summary
Your study of microeconomics and consumer behavior is made simple with help from this comprehensive chapter. Fun lessons provide in-depth analyses of utility maximization, indifference curves, consumer preferences, choice in economics and more. Review these lessons whenever your schedule permits using any computer or mobile device with Internet access. Find out how much you understand about the concepts they cover by taking short quizzes and a practice exam. In no time, you will have the knowledge to:
- Define the consumer in microeconomics
- Describe the individual demand curve
- List factors that affect the market demand curve and understand how this curve is used and calculated
- Discuss substitution and income effects
- Provide details about normal and inferior goods in microeconomics
- Explain how the Engel curve influences individual demand
- Describe the rate of transformation and budget lines in economics
- Share the definition of the marginal rate of substitution
- Examine economics assumptions about the maximization of utility
- Discuss various consumer theories in economics
1. Who Is the Consumer in Microeconomics?
Who is the consumer in microeconomics? In this lesson, you will learn the definition of a consumer and the microeconomic assumption that explains their decision-making process.
2. Utility Maximization: Budget Constraints & Consumer Choice
Do you spend your money rationally, or just throw it up in the air? This lesson explains the processes that consumers go through to spend their money and why for some people throwing money in the air with abandon works best.
3. Understanding the Individual Demand Curve
Want to see how economics affects the decisions you make on a daily basis? This lesson on the individual demand curve helps to explain why we fall for marked-down holiday candy.
4. Factors that Affect the Market Demand Curve
Just like any other demand curve, there are a number of factors that can affect the market demand curve. This lesson introduces many of them and explains how difficult it can be in real life to actually measure equilibrium.
5. Calculating & Using the Market Demand Curve in Microeconomics
Wouldn't it be handy to producers if they had a way of determining the demand curve for a whole market in a given area? Luckily, the market demand curve gives them precisely such a tool.
6. Substitution & Income Effects: Impacts on Supply & Demand
Have you ever changed your mind about buying something because they raised the price? Or maybe opted for an upgrade because you got a raise? This lesson explains the substitution and income effects, the terms economists use to describe those actions.
7. Normal & Inferior Goods in Microeconomics
A consumer's income affects the types of products that they purchase. In this lesson, you will learn the definition of and differences between normal and inferior goods in microeconomics and how they affect consumer demand.
8. How the Engel Curve Influences Individual Demand
Ever wonder how income affects demand? If you're an economist, you've got the Engel curve to explain that very thing. Additionally, the Engel curve helps economists identify inferior goods and helps producers make supply decisions.
9. Consumer Preferences & Choice in Economics
Why do consumers choose to purchase certain products or services? In this lesson, you will learn what consumer preference assumptions are and how they affect consumer choice in economics.
10. Consumer Theories in Economics: Decision Making, Incentives & Preferences
Really, what do we know about consumers? Considering that there are billions around the world, our knowledge is far from perfect. However, economists have a number of ideas and assumptions about consumers that help inform their theories.
11. Budget Lines & the Rate of Transformation in Economics
Ever wonder why combo deals at pizza places appeal to us so much? They save us money, right? This lesson explains how economists measure the power of one's budget, as well as how businesses can use that information to their advantage.
12. Indifference Curves: Use & Impact in Economics
Like it or not, the demand of a given good is often influenced by the demand of other goods. Sometimes this is a good thing for the good in question, other times it's not. Indifference curves help economists figure out which is the case.
13. Marginal Rate of Substitution: Definition, Formula & Examples
The marginal rate of substitution helps firms figure out just how much substitution of goods they can get away with until consumers have had enough. From toilet paper to beer, this has an effect on everything.
14. The Indifference Curve for Substitutes & Complements in Economics
Goods in a given economy do not exist in a vacuum. In this lesson, we will look at how substitutes and complements affect the indifference curve, helping economists figure out how prices ripple through the economy.
15. Economics Assumptions about the Maximization of Utility
What can we assume about producers wanting to maximize utility? For starters, we must assume that they want to maximize utility! This lesson explains why that is so important and how producers do it.
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Other chapters within the UExcel Introduction to Microeconomics: Study Guide & Test Prep course
- Microeconomics Basics
- Overview of Supply & Demand in Microeconomics
- Producers & Production in Microeconomics
- Business Structures & the Economy
- Accounting & Economics
- Economic Market Structures
- Scarce Economic Resource Markets Basics
- Business Technology & Development
- Microeconomics & The Government
- Studying for UExcel Introduction to Microeconomics
- UExcel Introduction to Microeconomics Flashcards