Posts

Thursday

Image
  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 10 of 26 … Figure 6 – The Consumer’s Optimum The consumer chooses the point on his/her budget constraint line that lies on the highest indifference curve. At this optimum point the marginal rate of substitution equals the relative price of the two goods. Along the budget constraint line the highest indifference curve he can reach is I2. … The consumer prefers point A which lies on indifference curve I3. But he cannot afford this bundle of pizza and Pepsi. Point B is affordable. But because it lies on a lower indifference curve he does not prefer B. The consumer can afford and wants the optimum point which is on I2. … At the optimum point · the indifference curve is tangent to the budget constraint · the slope of the indifference curve equals the slope of the budget constraint · the slope of the indifference curve is the...
Post a Comment
Read more

Wednesday

Image
  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 9 of 26 Figure 5 - Perfect Substitutes and Perfect Complements Panel (a) when two goods are perfectly substitutable, such as nickels and dimes, the indifference curves are straight lines. Panel (b) when two goods are perfectly complementary, such as left shoes and right shoes, the indifference curves are right angles. … The shape of an indifference curve shows the consumer's willingness to trade one good for the other. When the goods are easy to substitute for each other, the indifference curves are less bowed. When the goods are hard to substitute for each other, the indifference curves are more bowed. … Consider the two extreme cases · perfect substitutes · perfect complements Perfect Substitutes Suppose someone offers you the choice of bundles of nickels or dimes. Most likely you would care only about the total mone...
Post a Comment
Read more

Tuesday

Image
  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 8 of 26 … Figure 4 – Bowed Indifference Curves Indifference curves are bowed inward. This shape shows the marginal rate of substitution (MRS) depends on the quantity of the two goods the consumer is currently consuming. … Here we consider four properties of most indifference curves. Property 1 – higher (further right) indifference curves are preferred to lower ones Property 2 - indifference curves are downward sloping Property 3 - indifference curves do not cross Property 4 - indifference curves are bowed inward … Property 4 - indifference curves are bowed inward The slope of an indifference curve is the marginal rate of substitution (MRS). This is the rate at which the consumer is willing to trade one good for the other. The MRS depends on the amount of each good the consumer is currently consuming. … On Figure 4 at po...
Post a Comment
Read more

Monday

Image
  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 7 Topics for Further Study Chapter 21 of 36 The Theory of Consumer Choice Section 7 of 26 … Figure 3 - The Impossibility of Intersecting Indifference Curves A situation of intersecting indifference curves can never happen. According to these indifference curves the consumer would be equally satisfied at points A, B, and C, even though point C has more of both goods than point A. … Four properties of indifference curves: Property 1 - higher (farther right) indifference curves are preferred to lower ones Property 2 - indifference curves are downward sloping Property 3 - indifference curves do not cross Property 4 - indifference curves are bowed inward … Property 3 - Indifference curves do not cross Suppose two indifference curves did cross, as in Figure 3. Because point A is on the same indifference curve as point B, the two points would make the consumer equally happy. Because point B is on the same i...
Post a Comment
Read more

Scot and Fumiko pictures and information

Image
  Fumiko Scot's information: Weight at 165 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 168. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, now eat right and light, and get enough exercise. Now am spending most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on ba...
Post a Comment
Read more

HAT Manifesto Part 1/3 - Rubric Cube - 250803 edit

Image
  “The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents wou...
Post a Comment
Read more