Document

Document technical information

Format ppt
Size 625.7 kB
First found May 22, 2018

Document content analysis

Category Also themed
Language
English
Type
not defined
Concepts
no text concepts found

Persons

Organizations

Places

Transcript

Law of Demand
 Law of Demand
 People do less of what they want to do as the cost of
doing it rises
 Recall the Cost-Benefit Principle
 Pursue an action if and only if its benefits are at least as
great as its costs
 Recall the Reservation Price
 The highest price we’d be willing to pay
1
Total Expenditure
 Total Expenditure equals
 The number of units sold multiplied by the price of the
good
 Total Expenditure = Total Revenue
 The dollar amount that consumers spend on a product is
equal to the dollar amount that sellers receive
2
Fig. 5.7
The Demand Curve for Movie Tickets
3
×

Report this document