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1、Chapter Four,Consumer Choice, 2007 Pearson Addison-Wesley. All rights reserved.,42,Figure 4.1 Bundles of Pizzas and Burritos Lisa Might Consume,(a),30,25,15,Z, Pizzas per semester,25,20,15,10,5,d,a,b,e,c,f,A,B,(b),30,25,15,Z, Pizzas per semester,25,20,15,10,d,a,b,I,1,e,c,f, 2007 Pearson Addison-Wesl
2、ey. All rights reserved.,43,Figure 4.1 Bundles of Pizzas and Burritos Lisa Might Consume (contd),(c),30,25,15,Z, Pizzas per semester,25,20,15,10,d,I,0,I,1,I,2,e,c,f, 2007 Pearson Addison-Wesley. All rights reserved.,44,Figure 4.2 Impossible Indifference Curves,(a) Crossing,Z, Pizzas per semester,I,1
3、,I,0,a,b,e,(b) Upward Sloping,Z, Pizzas per semester,I,a,b, 2007 Pearson Addison-Wesley. All rights reserved.,45,Figure 4.2 Impossible Indifference Curves (contd),a,b,(c) Thick,Z, Pizzas per semester,I, 2007 Pearson Addison-Wesley. All rights reserved.,46,Figure 4.3 Marginal Rate of Substitution,(a)
4、 Indifference Curve Convex to the Origin,5,3,8,1,1,1,1,2,0,2,3,3,4,5,6,Z, Pizzas per semester,a,b,c,d,I,(b) Indifference Curve Concave to the Origin,5,7,1,1,2,0,2,3,3,4,5,6,Z, Pizzas per semester,a,b,c,I, 2007 Pearson Addison-Wesley. All rights reserved.,47,Figure 4.4 Perfect Substitutes, Perfect Co
5、mplements, Imperfect Substitutes,(a) Perfect Substitutes,1,2,3,4,Pepsi, Cans per week,1,0,2,3,4,I,1,I,2,I,3,I,4,(b) Perfect Complements,1,2,3,Pie, Slices per week,1,2,3,0,I,1,I,2,I,3,a,d,e,c,b, 2007 Pearson Addison-Wesley. All rights reserved.,48,Figure 4.4 Perfect Substitutes, Perfect Complements,
6、Imperfect Substitutes (contd),(c) Imperfect Substitutes,Z, Pizzas per semester,I, 2007 Pearson Addison-Wesley. All rights reserved.,49,Application (Page 83) Indifference Curves Between Food and Clothing,Clothing per year,I,4,I,3,I,2,I,1, 2007 Pearson Addison-Wesley. All rights reserved.,410,Figure 4
7、.5 Utility and Marginal Utility,MU,Z,10,9,8,7,6,5,4,3,2,1,Z, Pizzas per semester,0,130,(b) Marginal Utility,20,D,U,=,20,Utility function,U,(10,Z,),D,Z,=,1,10,9,8,7,6,5,4,3,2,1,Z, Pizzas per semester,0,350,250,(a) Utility,230, 2007 Pearson Addison-Wesley. All rights reserved.,411,Table 4.1 Allocation
8、s of a $50 Budget Between Burritos and Pizza, 2007 Pearson Addison-Wesley. All rights reserved.,412,Figure 4.6 Budget Constraint,Opportunity set,50,=,Y,/,p,Z,L,1,(,p,Z,= $1,Y,= $50),25,=,Y,/,p,B,20,10,10,0,30,Z, Pizzas per semester,a,b,c,d, 2007 Pearson Addison-Wesley. All rights reserved.,413,Figur
9、e 4.7 Changes in the Budget Constraint,(a) Price of Pizza Doubles,Loss,50,L,1,(,p,Z,= $1),L,2,(,p,Z,= $2),25,25,0,Z, Pizzas per semester,(b) Income Doubles,Gain,100,L,3,(,Y,=,$100),L,1,(,Y,=,$50),50,25,50,0,Z, Pizzas per semester, 2007 Pearson Addison-Wesley. All rights reserved.,414,Page 91 Solved
10、Problem 4.2,10,0,12,Water, Thousand gallons per month,Budget line,Quota,A,B, 2007 Pearson Addison-Wesley. All rights reserved.,415,Figure 4.8 Consumer Maximization,(a) Interior Solution,Budget line,10,20,25,50,30,10,0,Z, Pizzas per semester,I,1,I,2,I,3,d,f,c,e,a,g,A,B,(b) Corner Solution,Budget line
11、,25,50,Z, Pizzas per semester,I,1,I,2,I,3,e, 2007 Pearson Addison-Wesley. All rights reserved.,416,Page 95 Solved Problem 4.3,SUVs per decade,1,L,B,l,L,N,e,N,e,B,1, 2007 Pearson Addison-Wesley. All rights reserved.,417,Figure 4.9 Optimal Bundles on Convex Sections of Indifference Curves,(a) Strictly
12、 Concave Indifference Curves,Z, Pizzas per semester,e,d,I,2,I,1,I,3,e,d,I,2,I,1,(b) Concave and Convex Indifference Curves,Z, Pizzas per semester,Budget,line,Budget,line, 2007 Pearson Addison-Wesley. All rights reserved.,418,Page 98 Solved Problem 4.4,American meals per year,a,f,L,A,L,F,I,1,I,2, 2007 Pearson Addison-Wesley. All rights reserved.,419,Figure 4.10 Food Stamps Versus Cash,Y,Y,+,100,Y,+,100,0,100,Food per month,Budget line with,food stamps,Budget line with cash,Original,budget line,A,B,f,d,e,Y,C,I,1,I,2,I,3,
