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

Introduction to MacroEconomics Chapter 10

by: Caroline Jok

Introduction to MacroEconomics Chapter 10 ECON 1011

Marketplace > George Washington University > Economcs > ECON 1011 > Introduction to MacroEconomics Chapter 10
Caroline Jok
GPA 3.8
Principles of Economics I
Foster, I

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

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

Professor Foster Chapter 10.1-10.2 Introduction to Macroeconomics Consumer Choice and Behavioral Ethics Hubbard and O'Brien
Principles of Economics I
Foster, I
Class Notes
gwu, Macroeconomics, chapter 10, Foster, Hubbard and O'Brien, Consumer Choice and Behavioral Ethics, Economics
25 ?




Popular in Principles of Economics I

Popular in Economcs

This 2 page Class Notes was uploaded by Caroline Jok on Saturday October 24, 2015. The Class Notes belongs to ECON 1011 at George Washington University taught by Foster, I in Fall 2015. Since its upload, it has received 21 views. For similar materials see Principles of Economics I in Economcs at George Washington University.


Reviews for Introduction to MacroEconomics Chapter 10


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: 10/24/15
Professor Foster Econ 1011 Hubbard and O Brien Macroeconomics Foundations and Models Chapter 101102 Notes Consumer Choice and Behavioral Economics 101 Utility and Consumer Decision Making I law of demand price of a good falls quantity demand increases I The Economic Model of Consumer Behavior in a Nutshell 0 Consumers will choose to buy the combinations of goodservices that makes them as well off as possible from among all the combinations that their budget allows them to buy I Utility 0 The enjoyment or satisfaction people receive from consuming goods and services 0 Unit util 0 Can t be compared across people I The principle of diminishing Marginal Utility 0 Marginal Utility change in total utility a person receives from consuming one additional unit of a good or service 0 As you increase consumption total utility increases 0 Law of diminishing marginal utility diminishing additional satisfaction as they consume more of a good or service during a given period of time I The Rule of Equal marginal Utility per Dollar Spent Budget Constraint limited amount of income Optimal decisions are made at the margin Rule of equal marginal utility per dollar spent Two conditions I Marginal Utility per dollars 39 Use all of your budget I The income Effect and Substitution Effect of a Price Change 0000 0 Income effect The change in quantity demanded of a good that results from the effect of a change in price on consumer purchasing power holding all other factors constant I If the product is a normal good consumer increases the quantity demanded as income increases I Inferior good income rises and quantity demand decreases O Substitution Effect I The change in the quantity demanded of a good that results from a change in price making the good more or less expensive relative to other goods holding constant the effect of the price change on consumer purchasing power 0 Fall in price of pizza causes you to eat more pizza and drink less coke 102 Where Demand Curves come From I law of demand whenever the price falls quantity demand increases I If the good is an inferior good gt income effect leads consumers to decrease the quantity of the good they demand I The substitution effect results in consumers increasing the quantity of good they demand when their price falls If the good is inferior the income effect leads consumers to decrease the quantity of the good they demand I When the price of an inferior good falls income effect and substitution effect work in opposite directions I Are there any upward sloping demand curves in the real world 0 Good would have to be inferior and the income effect larger than the substitution effect 0 Giffen Good


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."

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"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.