Microeconomics (BFE0020)

This document summarizes Lecture 2 on utility functions and consumer behavior in microeconomics, designed to help with exam preparation. It explains how consumers make choices to maximize their satisfaction (utility) with the resources they have. Key topics include the utility function, which shows how much satisfaction a consumer gets from different goods, and the budget constraint, which limits how much they can buy. These notes break down complex concepts into simpler terms, making them easie...

These notes are written in a lecture-style format to help with exam preparation by breaking down key ideas from microeconomics. Microeconomics studies how individuals and businesses make decisions with limited resources. It covers important concepts like scarcity (limited resources but unlimited wants), opportunity cost (the value of the next best alternative when making a choice), and supply and demand, which explain how prices are determined. These notes aim to simplify these concepts and prov...

This document explains how important microeconomic ideas relate to sales at Sainsbury's using concepts from your coursework. It shows how supply and demand influence pricing; for example, Sainsbury’s lowers prices during sales to attract more customers. Price elasticity illustrates that basic items like clothes are less affected by price changes, while luxury goods see a bigger drop in sales if prices go up. Consumer behaviour is shaped by discounts and loyalty programs, which help customers f...