帕金经济学第9版课件Ch08-9e-lecture.ppt

Maximizing Utility Preferences A household’s preferences determine the benefits or satisfaction a person receives consuming a good or service. The 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 utility. Maximizing Utility Table 8.1 provides an example of total utility schedule. Total utility from a good increases as the quantity of the good increases. For example, as the number of movies seen in a month increases, total utility from movies increases. Maximizing Utility Marginal Utility Marginal utility is the change in total utility that results from a one-unit increase in the quantity of a good consumed. As the quantity consumed of a good increases, the marginal utility from consuming it decreases. We call this decrease in marginal utility as the quantity of the good consumed increases the principle of diminishing marginal utility. Maximizing Utility Table 8.1 provides an example of marginal utility schedule. Marginal utility from a good decreases as the quantity of the good increases. For example, as the number of movies seen in a month increases, marginal utility from movies decreases. Maximizing Utility Figure 8.1(a) shows a total utility curve for soda. Total utility increases with the consumption of a soda increases. Maximizing Utility Figure 8.1(b) illustrates diminishing marginal utility. As the quantity of soda increases, the marginal utility from soda diminishes. Maximizing Utility The key assumption of marginal utility theory is that the household chooses the consumption possibility that maximizes total utility. The Utility-Maximizing Choice We can find the utility-maximizing choice by looking at the total utility that arises from each affordable combination. The utility-maximizing combination is called a consumer equilibrium. Maximizing Utility Table 8.2 shows Lisa’s utility-maximizing c