Transcript Managerial Economics in a Global Economy, 5th Edition by Dominick Salvatore Chapter 3: Appendix Behind the Market Demand Curve The Theory of Consumer Choice Prepared by Robert.

Managerial Economics in a
Global Economy, 5th Edition
by
Dominick Salvatore
Chapter 3: Appendix
Behind the Market Demand Curve
The Theory of Consumer Choice
Prepared by Robert F. Brooker, Ph.D.
Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.
Slide 1
Indifference Curves
Prepared by Robert F. Brooker, Ph.D.
Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.
Slide 2
The Budget Line
GF: M = $6, PX = PY = $1
GF’: PX = $2
GF’’: PX = $0.67
Prepared by Robert F. Brooker, Ph.D.
Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.
Slide 3
Consumer Equilibrium
Prepared by Robert F. Brooker, Ph.D.
Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.
Slide 4
Derivation of the
Consumer’s
Demand Curve
Prepared by Robert F. Brooker, Ph.D.
Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.
Slide 5
Separation of the
Substitution and
Income Effect of
a Price Change
Prepared by Robert F. Brooker, Ph.D.
Copyright ©2004 by South-Western, a division of Thomson Learning. All rights reserved.
Slide 6