TOPIC 3: The Theory of Consumer Behavior or What’s Behind the Demand Curve?
Required Readings:
- Hall & Lieberman, Chapter 5
- The Wall Street Journal
STUDY QUESTIONS FOR TOPIC 3:
- What is value?
- What determines an object’s value?
- Where do demand curves come from? Why are they downward sloping?
- What is a “consumer equilibrium”?
- What factors influence the consumer equilibrium?
