Scot Wick Blog

  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 6 of 26 … Because indifference curves show a consumer's preferences, they have properties that reflect those preferences. Next, we consider 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 1 – higher (farther right) indifference curves are preferred to lower ones This is because people usually prefer to consume more goods than less. Figure 2 higher indifference curve I2 shows one can buy larger quantities of goods than lower indifference curve I1. Higher income or lower prices allows movement from I1 to I2. … Property 2 - indifference curves are downward sloping The slope of an indifferen...

  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 5 of 26 … Because indifference curves are not straight lines the marginal rate of substitution is not the same at all points on a indifference curve. The rate at which consumers are willing to trade between pizza and Pepsi depends on · whether they are hungrier or thirstier · how much pizza and Pepsi they are already consuming … Per Figure 2, starting at combination C · to move from combination C to combination B, must give up 100 pints of Pepsi to have 30 more pizzas · to move from B to A, must give up 50 pints of Pepsi to have 60 more pizzas The consumer is equally satisfied at all points on any given indifference curve. … Because consumers prefer more consumption to less, higher indifference curves are preferred to lower ones. A consumer can move to a higher indifference curve either because their income has gone up ...

  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 4 of 26 … Figure 2 - The Consumer's Preferences¬ The consumer's preferences are represented with indifference curves These show the combinations of pizza and Pepsi that equally satisfy the consumer. Because the consumer prefers more of a good, points on the higher I2 indifference curve are preferred to points on the lower I1 indifference curve The marginal rate of substitution · measures how much Pepsi the consumer requires to be compensated · for a one unit reduction in pizza consumption … Here we consider how consumers make choices. The budget constraint of the previous section is one piece of the analysis. It shows the combinations of goods the consumer can afford given his income and the prices of the goods. The consumer's choices depend on · his budget constraint · his preferences for the two goods … A con...

  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...

  “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...