Consumer choice - revealed preferences, Microeconomics

Consumer Choice 

* Decision making & Public Policy

- Selecting from a non matching and matching grant to fund police expenditures

2412_budget line.png

1408_budget line1.png
187_budget line2.png
1060_budget line3.png

Revealed Preferences

* If we know the choices which the consumer has made, we can determine what her preferences or priorities are if we have information about sufficient number of choices which are made when prices and incomes vary.

Revealed Preferences--Two Budget Lines

821_budget line4.png
1834_budget line5.png

Revealed Preferences--Four Budget Lines

395_budget line6.png

2207_budget line7.png

Posted Date: 10/10/2012 6:22:38 AM | Location : United States







Related Discussions:- Consumer choice - revealed preferences, Assignment Help, Ask Question on Consumer choice - revealed preferences, Get Answer, Expert's Help, Consumer choice - revealed preferences Discussions

Write discussion on Consumer choice - revealed preferences
Your posts are moderated
Related Questions

Yuen, a travelling salesman for snake oil, can produce the stuff at a marginal cost of 1. There are 100 potential customers in Vernon, each of whom has the following demand functio

Q. Explain Function of Central Bank? Central Bank: A public financial institution, generally established at the national level and controlled by a national government that sets


STRUCTURE OF NATIONAL INCOME: The structure or composition of national income of an economy explains the relative significance of the different producing sectors in an economy

Marginal Utility and Indifference Curve - If the consumption of a product moves along an indifference curve, additional utility derived from the increase in consumption of sing

Discount Rate The term discount rate relates to business valuations. It is the rate applied to a future torrent of making an income or cash flow to measure its represen

Determinants of the Income Elasticity of the Demand: The determinants of income elasticity of demand are given below: The Degree of necessity of the commodity.

Change in the price of a related good: Goods relate to each other in two ways. Goods are either complements or substitutes. Complementary goods are goods with joint demand. The

a consumer consumes only two goods x and y is in eqillibrium price of x falls explain the reaction of consumer through utility analysis