Chapter 3 Demand and Behavior in Markets. Copyright © 2001 Addison Wesley LongmanSlide 3- 2 Figure...

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Chapter 3

Demand and Behaviorin Markets

Figure 3.1 Optimal Consumption Bundle

Figure 3.2 Income Expansion Path

Figure 3.3(a) Superior and Inferior Goods

Figure 3.3(b) Superior and Inferior Goods

Figure 3.4(a) Income and Tastes

Figure 3.4(b) Income and Tastes

Figure 3.5 Varying Prices

Figure 3.6 Price-Consumption Path

Figure 3.7 Demand Curve for Good 1

Figure 3.8(a) Nonconvex Preferences and Demand

Figure 3.8(b) Nonconvex Preferences and Demand

Figure 3.9(a) Nonstrictly Convex Indifference Curves and Demand

Figure 3.9(b) Nonstrictly Convex Indifference Curves and Demand

Figure 3.10(a) Income Effects, Substitution Effects, and Demand

Figure 3.10(b) Income Effects, Substitution Effects, and Demand

Figure 3.11 Compensating

for Price Changes

Figure 3.12 Income and Substitution Effects Work in Opposite Directions

Figure 3.13 Giffen Good

Figure 3.14 Deriving Compensated Demand Curves

Figure 3.15 Plotting Compensated and Uncompensated Demand Curves

Figure 3.16(a) Compensated Demands of Rats

Figure 3.16(b) Compensated Demands of Rats

Figure 3.17 Compensated Demand Function of Rats

Figure 3.18 Work and Leisure

Figure 3.19 Income and Crime

Figure 3.20 The Paradox of Crime Prevention

Figure 3.21 Elasticity along a Linear Demand Curve

Figure 3.22(a) Perfectly Elastic and Perfectly Inelastic Demand Curves

Figure 3.22(b) Perfectly Elastic and Perfectly Inelastic Demand Curves

Figure 3.23 The Demand for Nintendo Time

Figure 3.24 The Multiplication Factor

Figure 3.25 Ordinal Utility Property

Figure 3.26 Deriving Market Demand from Individual Demand

Figure 3.27 Derivation of an Expenditure Function

Figure 3.28(a) Willingness to Pay and Consumer Surplus

Figure 3.28(b) Willingness to Pay and Consumer Surplus

Figure 3.29

Figure 3.30 Supply and Demand Curves for the Experimental Markets

Figure 3.31 Exact and Approximate Measures of Consumer Surplus

Figure 3.32 Change in Consumer Surplus

Figure 3.33 Price Compensating Variation in Income

Figure 3.34

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