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Chapter 5

Chapter 5. Uncertainty and Consumer Behavior. CHAPTER 5 OUTLINE. 5.1 Describing Risk 5.2 Preferences Toward Risk 5.3 Reducing Risk 5.4 The Demand for Risky Assets 5.5 Behavioral Economics. Uncertainty and Consumer Behavior.

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Understanding more about Consumers

Understanding more about Consumers. Recall the law of demand was a statement that the price of a product and the quantity demanded of the product move in opposite directions. Thus, a higher price means a lower quantity demanded and a lower price means a higher quantity demanded.

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UTILITY ANALYSIS

UTILITY ANALYSIS. SARBJEET KAUR Lecturer in Economics. Meaning of Utility Types of Utility Law of DMU Law of Equi-Marginal Utility. Utility Means want Satisfying power of a Good/ Commodity Utility is Subjective Utility is Relative Utility is Independent of Morality. Types of Utility.

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Marginal utility diminishes - PowerPoint PPT Presentation

Chapter 5

Understanding more about Consumers

UTILITY ANALYSIS