Lecture notes
Lecture notes - demand and the consumer
- Institution
- University Of Greenwich
- Book
- The Economy
Lecture notes Introduction To Economics For Business Students (ECON1006) The Economy, ISBN: 0247
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
Content preview
DEMAND ANDTHE CONSUMER
, BUSINESS ISSUES: DEMAND AND THE
CONSUMER
• What determines the amount of a product that a consumers wish to buy
at each price?
• How does consumer satisfaction or utility affect purchasing decisions?
• Why are purchasing decisions sometimes risky for consumers?
• How do attitudes towards risk vary between consumers?
• How can insurance help to reduce or remove the level of risk?
• Why may insurance companies have to be aware of high risk consumers
being more likely to take out insurance (’adverse selection’) and people
behaving less carefully when they have insurance (‘moral hazard’)
, TOTAL UTILITY THEORY
• As you get additional units of something that you like, your level of satisfaction
(utility) will rise.
• Each time you get an additional unit of the thing, your level of satisfaction will
rise, but by a smaller amount than the time before,
• So, each additional unit gives you less satisfaction, or utility, than the unit before
the law of diminishing marginal utility or returns.
, DEMAND AND THE CONSUMER
Marginal Utility Theory
and
Products and Services
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SchaperNotes. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53340 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now