New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Econ 201, Week 6

by: Thanh Notetaker

Econ 201, Week 6 ECN 201 (Professor Colleen Scott)

Thanh Notetaker
La Salle
GPA 3.72

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Notes from week 6 of class
Introductory Microeconomics
Colleen Scott
Class Notes
25 ?




Popular in Introductory Microeconomics

Popular in Economcs

This 2 page Class Notes was uploaded by Thanh Notetaker on Sunday March 6, 2016. The Class Notes belongs to ECN 201 (Professor Colleen Scott) at La Salle University taught by Colleen Scott in Spring 2016. Since its upload, it has received 19 views. For similar materials see Introductory Microeconomics in Economcs at La Salle University.

Similar to ECN 201 (Professor Colleen Scott) at La Salle


Reviews for Econ 201, Week 6


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 03/06/16
ECON 201. Week Six (March 3 note) Consumption choices The choices you make as a buyer of goods and services are influenced by many factors, which economists summarize as  Consumption possibilities  Preferences Consumption Possibilities Consumption possibilities are all the things that a consumer can afford to buy. A Consumer’s Budget Line Consumption possibilities are limited by income, the price of a movie, and the price of soda. Budget line shows the limits of consumption possibilities. Preferences The choice that one makes depends on preferences—likes and dislikes. Benefit or satisfaction from consuming a good or service is called utility. Total Utility Total utility is the total benefit a person gets from the consumption of goods. Generally, more consumption gives more total utility. Marginal Utility Marginal utility from a good is the change in total utility that results from a unit-increase in the quantity of the good consumed. As the quantity consumed of a good increases, the marginal utility from it decreases. We call this decrease in marginal utility as the quantity of the good consumed increases the principle of diminishing marginal utility. The key assumption is that the household chooses the consumption possibility that maximizes total utility. A Spreadsheet Solution The direct way to find the utility-maximizing choice is to make a table in a spreadsheet and do the calculations.  Find the just-affordable combinations  Find the total utility for each just-affordable combination  The utility-maximizing combination is the consumer’s choice A more natural way of finding the consumer equilibrium is to use the idea of choices made at the margin. Choosing at the Margin Marginal utility is the increase in total utility that results from consuming one more unit of the good. The marginal utility per dollar is the marginal utility from a good that results from spending one more dollar on it. Marginal Utility Rule 1 The marginal utility per dollar equals the marginal utility from a good divided by its price. 2 Calling the marginal utility from movies MU Mnd the price of a movie P ,Mthen the marginal utility per dollar from movies is MU /M . Utility-Maximizing Rule A consumer’s total utility is maximized by following the rule:  Spend all available income  Equalize the marginal utility per dollar for all goods


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.