# on 17-Dec-2016 (Sat)

#### Flashcard 1402094882060

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Do zagadnień wchodzących w zakres elektrotechniki należą: wytwarzanie, przesyłanie, rozdzielanie, przetwarzanie energii elektrycznej.
Do zagadnień wchodzących w zakres elektrotechniki należą: wy twarzanie, przesyłanie, rozdzielanie, przet warzanie energii elekt rycznej.

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#### Flashcard 1425573022988

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Reading 15 provides the basis for understanding [...] of [...]
the cost side of firms’ profit equation.

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Reading 15 deals with the theory of the firm, focusing on the supply of goods and services by profit-maximizing firms. That reading provides the basis for understanding the cost side of firms’ profit equation.

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Study Session 4
quantities. Reading 14 covers the theory of the consumer, which addresses the demand for goods and services by individuals who make decisions to maximize the satisfaction they receive from present and future consumption. <span>Reading 15 deals with the theory of the firm, focusing on the supply of goods and services by profit-maximizing firms. That reading provides the basis for understanding the cost side of firms’ profit equation. Reading 16 completes the picture by addressing revenue and explains the types of markets in which firms sell output. Overall, the study session provides the economic tools fo

#### Flashcard 1425611820300

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This reading is organized as follows.

Section 2 explains how [...].

economists classify markets

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This reading is organized as follows. Section 2 explains how economists classify markets. Section 3 covers the basic principles and concepts of demand and supply analysis of markets. Section 4 introduces measures of sensitivity of demand to changes in

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1. INTRODUCTION
s to converge to an equilibrium price? What are the conditions that would make that equilibrium stable or unstable in response to external shocks? How do different types of auctions affect price discovery? <span>This reading is organized as follows. Section 2 explains how economists classify markets. Section 3 covers the basic principles and concepts of demand and supply analysis of markets. Section 4 introduces measures of sensitivity of demand to changes in prices and income. A summary and practice problems conclude the reading. <span><body><html>

#### Annotation 1425759669516

 #cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4 An important concept in the market model is market equilibrium , defined as the condition in which the quantity willingly offered for sale by sellers at a given price is just equal to the quantity willingly demanded by buyers at that same price.

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An important concept in the market model is market equilibrium , defined as the condition in which the quantity willingly offered for sale by sellers at a given price is just equal to the quantity willingly demanded by buyers at that same price. When that condition is met, we say that the market has discovered its equilibrium price. An alternative and equivalent condition of equilibrium occurs at that quantity at which the high

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3.6. Market Equilibrium
An important concept in the market model is market equilibrium , defined as the condition in which the quantity willingly offered for sale by sellers at a given price is just equal to the quantity willingly demanded by buyers at that same price. When that condition is met, we say that the market has discovered its equilibrium price. An alternative and equivalent condition of equilibrium occurs at that quantity at which the highest price a buyer is willing to pay is just equal to the lowest price a seller is willing to accept for that same quantity. As we have discovered in the earlier sections, the demand curve shows (for given values of income, other prices, etc.) an infinite number of combinations of prices and qua

#### Annotation 1425767009548

 #cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4 In our example, there are three exogenous variables (I, Py, and W) and three endogenous variables: Px, Qdx , and Qsx . Hence, we have a system of two equations and three unknowns. We need another equation to solve this system. That equation is called the equilibrium condition , and it is simply Qdx=Qsx .

3.6. Market Equilibrium
e of the demand and supply model of this particular market. Because of that, they are called exogenous variables . Price and quantity, however, are determined within the model for this particular market and are called endogenous variables . <span>In our simple example, there are three exogenous variables (I, P y , and W) and three endogenous variables: P x , Qdx , and Qsx . Hence, we have a system of two equations and three unknowns. We need another equation to solve this system. That equation is called the equilibrium condition , and it is simply Qdx=Qsx . Continuing with our hypothetical examples, we could assume that income equals $50 (thousand, per year), the price of automobiles equals$20 (thousand, per automobile), and

#### Annotation 1426287889676

 #cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4 If price measures dollars per unit, and quantity measures units per month, then the measure of total surplus is dollars per month. Total Surplus, If the market ceased to exist, would be the monetary value of the loss to society.

3.11. Total Surplus—Total Value minus Total Variable Cost
equilibrium and total surplus, represented as the area of the shaded triangle. The area of that triangle is the difference between the trapezoid of total value to society’s buyers and the trapezoid of total resource cost to society’s sellers. <span>If price measures dollars (or euros) per unit, and quantity measures units per month, then the measure of total surplus is dollars (euros) per month. It is the “bargain” that buyers and sellers together experience when they voluntarily trade the good in a market. If the market ceased to exist, that would be the monetary value of the loss to society. Exhibit 14. Total Surplus as the Area beneath the Demand Curve and above the Supply Curve <span><body><html>

#### Annotation 1426295229708

 #cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4 Sometimes, lawmakers determine that the market price is “too high” for consumers to pay, so they use their power to impose a ceiling on price below the market equilibrium price. Some examples of ceilings include rent controls (limits on increases in the rent paid for apartments), limits on the prices of medicines, and laws against “price gouging” after a hurricane (i.e., charging opportunistically high prices for goods such as bottled water or plywood).

3.13. Market Interference: The Negative Impact on Total Surplus
Sometimes, lawmakers determine that the market price is “too high” for consumers to pay, so they use their power to impose a ceiling on price below the market equilibrium price. Some examples of ceilings include rent controls (limits on increases in the rent paid for apartments), limits on the prices of medicines, and laws against “price gouging” after a hurricane (i.e., charging opportunistically high prices for goods such as bottled water or plywood). Certainly, price limits benefit anyone who had been paying the old higher price and can still buy all they want at the lower ceiling price. However, the story is more complicated than that. Exhibit 16 shows a market in which a ceiling price, P c , has been imposed below equilibrium. Let’s examine the full impact of such a law. Exhibit 16. A Price Ceiling&

#### Flashcard 1427363990796

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#9-dic-2016 #bloomberg #noticias
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South Korean President Park Geun-hye, who's been [...] with an overwhelming majority of votes in parliament.

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South Korean President Park Geun-hye, who's been impeached with an overwhelming majority of votes in parliament.

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5 things you need to know to start your day
o was today little changed. Next week, attention shifts to the U.S. Federal Reserve, with anything less than a rate hike constituting a major upset. Park out Another day, another world leader toppled. This time, it's <span>South Korean President Park Geun-hye, who's been impeached with an overwhelming majority of votes in parliament. That means she's been suspended from power until the constitutional court rules on the lawmakers' decision. It must do so within six months, which would then start the clock for an elec

#### Flashcard 1428168772876

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Besides a good’s own price, other variables also have influence on purchase decision, such as [...], [...], the prices of other goods that serve as substitutes or complements, and so on.
consumers’ incomes, their tastes and preferences

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Although a good’s own price is important in determining consumers’ willingness to purchase it, other variables also have influence on that decision, such as consumers’ incomes, their tastes and preferences, the prices of other goods that serve as substitutes or complements, and so on. Economists attempt to capture all of these influences in a relationship called the demand function .</spa

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3.1. The Demand Function and the Demand Curve
yers will choose to buy less of it, and as its price falls, they buy more. This is such a ubiquitous observation that it has come to be called the law of demand , although we shall see that it need not hold in all circumstances. <span>Although a good’s own price is important in determining consumers’ willingness to purchase it, other variables also have influence on that decision, such as consumers’ incomes, their tastes and preferences, the prices of other goods that serve as substitutes or complements, and so on. Economists attempt to capture all of these influences in a relationship called the demand function . (In general, a function is a relationship that assigns a unique value to a dependent variable for any given set of values of a group of independent variables.) We represent such a deman

#### Flashcard 1428853493004

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
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In a [...] , each buyer places a subjective value on the item, and in general their values differ.

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In the second case, called a private value auction , each buyer places a subjective value on the item, and in general their values differ. An example might be an auction for a unique piece of art that buyers are hoping to purchase for t

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3.8. Auctions as a Way to Find Equilibrium Price
true value. An example of a common value auction would be bidding on a jar containing many coins. Each bidder could estimate the value; but until someone buys the jar and actually counts the coins, no one knows with certainty the true value. <span>In the second case, called a private value auction , each buyer places a subjective value on the item, and in general their values differ. An example might be an auction for a unique piece of art that buyers are hoping to purchase for their own personal enjoyment, not primarily as an investment to be sold later. Auctions also differ according to the mechanism used to arrive at a price and to determine the ultimate buyer. These mechanisms include the ascending price (or English) auc

#### Flashcard 1428856114444

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#derecho #introduccion-al-derecho
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El deber es simplemente el carácter obligatorio de las exigencias [...]
morales

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En conclusión, el deber es simplemente el carácter obligatorio de las exigencias morales y el deber jurídico es la presión que el Estado impone para el cumplimiento de una norma que tiene carácter sancionador, tan es así que el hombre debe acatar determinados manda

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#### Flashcard 1429067402508

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#sister-miriam-joseph #trivium
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These arts of (3)[...] have formed the traditional basis of liberal education.

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These arts of reading, writing, and reckoning have formed the traditional basis of liberal education, each constituting both a field of knowledge and the technique t o acquire that knowledge.

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#### Flashcard 1429102005516

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#sister-miriam-joseph #trivium
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[...] is the master art of the trivium
Rhetoric

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Rhetoric is the master art of the trivium, 12 for it presupposes and makes use of grammar and logic; it is the art of communicating through symbols ideas about reality</htm

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#### Flashcard 1429130317068

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#sister-miriam-joseph #trivium
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Humans are [...] and therefore have something to say.
rational

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humans alone among animals have the power to think. Consequently, they alone have language in the proper sense of the word. 1 This follows from their nature, for they are rational and therefore have something to say, social and therefore have someone to say it to, and animal and therefore require a physical mode of communicating ideas from one mind, which

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#### Flashcard 1429240941836

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
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Goods with negative income elasticity are called [...]

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le experience a rise in income, they buy absolutely less of some goods, and they buy more when their income falls. Hence, income elasticity of demand for those goods is negative. By definition, goods with negative income elasticity are called <span>inferior goods .<span><body><html>

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4.3. Income Elasticity of Demand: Normal and Inferior Goods
that the demand for that particular good rises when income increases and falls when income decreases. Hence, if we find that when income rises, people buy more meals at restaurants, then dining out is defined to be a normal good. <span>For some goods, there is an inverse relationship between quantity demanded and consumer income. That is, when people experience a rise in income, they buy absolutely less of some goods, and they buy more when their income falls. Hence, income elasticity of demand for those goods is negative. By definition, goods with negative income elasticity are called inferior goods . Again, the word inferior means nothing other than that the income elasticity of demand for that good is observed to be negative. It does not necessarily indicate anything at all about t

#### Flashcard 1430302100748

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4 #summary
Question
If own-price elasticity of demand is less than one in absolute value, demand is called [...];
“inelastic”

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Based on algebraic sign and magnitude of the various elasticities, goods can be classified into groups. If own-price elasticity of demand is less than one in absolute value, demand is called “inelastic”; it is called “elastic” if own-price elasticity of demand is greater than one in absolute value. Goods with positive income elasticity of demand are called normal goods, and those with

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SUMMARY
he dependent variable to the percentage change in the independent variable of interest. Important specific elasticities include own-price elasticity of demand, income elasticity of demand, and cross-price elasticity of demand. <span>Based on algebraic sign and magnitude of the various elasticities, goods can be classified into groups. If own-price elasticity of demand is less than one in absolute value, demand is called “inelastic”; it is called “elastic” if own-price elasticity of demand is greater than one in absolute value. Goods with positive income elasticity of demand are called normal goods, and those with negative income elasticity of demand are called inferior goods. Two goods with negative cross-price elasticity of demand—a drop in the price of one good causes an increase in demand for the other good—are called complements. Goods with positive cross-price elasticity of demand—a drop in the price of one good causes a decrease in demand for the other—are called substitutes. The relationship among own-price elasticity of demand, changes in price, and changes in total expenditure is as follows: If demand is elastic, a reduction in price resul

#### Flashcard 1430334082316

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
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A change in the value of anyvariable other than own-price will shift the entire demand curve. This is referred to as a [...]
change in demand.

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A change in a good’s own-price causes a movement along the demand curve, this is referred to as a change in quantity demanded, A change in the value of any other variable will shift the entire demand curve. This is referred to as a <span>change in demand.<span><body><html>

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but the intercepts have both increased, resulting in an outward shift in the demand curve, as shown in Exhibit 2. Exhibit 2. Household Demand Curve for Gasoline before and after Change in Income <span>In general, the only thing that can cause a movement along the demand curve is a change in a good’s own-price. A change in the value of any other variable will shift the entire demand curve. The former is referred to as a change in quantity demanded, and the latter is referred to as a change in demand. More importantly, the shift in demand was both a vertical shift upward and a horizontal shift to the right. That is to say, for any given quantity, the household is now wil

#### Flashcard 1430336965900

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
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The supply curve shows simultaneously the [...] at each price and the [...] for each quantity.
highest quantity willingly supplied

lowest price willingly accepted

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The graph of the inverse supply function is called the supply curve , and it shows simultaneously the highest quantity willingly supplied at each price and the lowest price willingly accepted for each quantity.

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3.3. The Supply Function and the Supply Curve

#### Flashcard 1430478261516

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Arc elasticity of demand is still defined as the percentage change in quantity by the percentage change in price but, because the choice of base for calculating percentage changes has an effect on the calculation, economists have chosen to use the [...] and the [...] as the base for calculating the percentage changes.
average quantity

average price

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still defined as the percentage change in quantity demanded divided by the percentage change in price. However, because the choice of base for calculating percentage changes has an effect on the calculation, economists have chosen to use the <span>average quantity and the averageprice as the base for calculating the percentage changes.<span><body><html>

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4.1. Own-Price Elasticity of Demand
e know that when price is 5, quantity demanded is 9,200, and when price is 6, quantity demanded is 8,800, but we do not know anything more about the demand function. Under these circumstances, economists use something called arc elasticity . <span>Arc elasticity of demand is still defined as the percentage change in quantity demanded divided by the percentage change in price. However, because the choice of base for calculating percentage changes has an effect on the calculation, economists have chosen to use the average quantity and the averageprice as the base for calculating the percentage changes. (Suppose, for example, that you are making a wage of €10 when your boss says, “I’ll increase your wage by 10 percent.” You are then earning €11. But later that day, if your boss then re

#### Flashcard 1430480620812

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
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the arc elasticity of demand would be:
[default - edit me]

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In our example, then, the arc elasticity of demand would be: E=ΔQQavgΔPPavg=−4009,00015.5=−0.244

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4.1. Own-Price Elasticity of Demand
are then earning €9.90. So, by receiving first a 10 percent raise and then a 10 percent cut in wage, you are worse off. The reason for this is that we typically use the original value as the base, or denominator, for calculating percentages.) <span>In our example, then, the arc elasticity of demand would be: E=ΔQQavgΔPPavg=−4009,00015.5=−0.244 There are two special cases in which linear demand curves have the same elasticity at all points: vertical demand curves and horizontal demand curves. Consider a vertical d

#### Flashcard 1430484552972

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#cfa #cfa-level-1 #economics #has-images #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4

Question
Arc elasticity of demand is:

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#### Flashcard 1430486650124

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Certainly, there could be no demand curve that is perfectly vertical at all possible prices, but over some range of prices it is not unreasonable that the same quantity would be purchased at a [...] or a [...]
slightly higher price

slightly lower price.

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Certainly, there could be no demand curve that is perfectly vertical at all possible prices, but over some range of prices it is not unreasonable that the same quantity would be purchased at a slightly higher price or a slightly lower price.

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4.1. Own-Price Elasticity of Demand
points: vertical demand curves and horizontal demand curves. Consider a vertical demand curve, as in Exhibit 21 Panel A, and a horizontal demand curve, as in Panel B. In the first case, the quantity demanded is the same, regardless of price. <span>Certainly, there could be no demand curve that is perfectly vertical at all possible prices, but over some range of prices it is not unreasonable that the same quantity would be purchased at a slightly higher price or a slightly lower price. Perhaps an individual’s demand for, say, mustard might obey this description. Obviously, in that price range, quantity demanded is not at all sensitive to price and we would say that de

#### Flashcard 1430489009420

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
elasticity is simply a measure of how [...] one variable is to change in the value of another variable
sensitive

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elasticity is simply a measure of how sensitive one variable is to change in the value of another variable

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4.3. Income Elasticity of Demand: Normal and Inferior Goods
In general, elasticity is simply a measure of how sensitive one variable is to change in the value of another variable. Quantity demanded of a good is a function not only of its own price, but also consumer income. If income changes, the quantity demanded can respond, so the analyst needs to understand

#### Flashcard 1430490582284

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
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We define a good with positive income elasticity as a [...]

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We define a good with positive income elasticity as a normal good

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4.3. Income Elasticity of Demand: Normal and Inferior Goods
always be negative because of the law of demand, income elasticity can be negative, positive, or zero. Positive income elasticity simply means that as income rises, quantity demanded also rises, as is characteristic of most consumption goods. <span>We define a good with positive income elasticity as a normal good . It is perhaps unfortunate that economists often take perfectly good English words and give them different definitions. When an economist speaks of a normal good, he is saying nothing

#### Flashcard 1430494776588

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
One study found that income elasticity of demand for beer is slightly [...], whereas income elasticity of demand for wine is significantly [...] .

An economist would therefore say that beer is inferior whereas wine is normal
negative

positive

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One study found that income elasticity of demand for beer is slightly negative, whereas income elasticity of demand for wine is significantly positive. An economist would therefore say that beer is inferior whereas wine is normal

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4.3. Income Elasticity of Demand: Normal and Inferior Goods
income elasticity of demand for that good is observed to be negative. It does not necessarily indicate anything at all about the quality of that good. Typical examples of inferior goods might be rice, potatoes, or less expensive cuts of meat. <span>One study found that income elasticity of demand for beer is slightly negative, whereas income elasticity of demand for wine is significantly positive. An economist would therefore say that beer is inferior whereas wine is normal. Ultimately, whether a good is called inferior or normal is simply a matter of empirical statistical analysis. And a good could be normal for one income group and inferior for another i

#### Flashcard 1430497922316

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
for some goods and some ranges of income, consumer income might not have an impact on purchase decision at all. Hence for those goods, income elasticity of demand is [...]
zero.

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for some goods and some ranges of income, consumer income might not have an impact on purchase decision at all. Hence for those goods, income elasticity of demand is zero.

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4.3. Income Elasticity of Demand: Normal and Inferior Goods
up but inferior for a high-income group of consumers. As their respective income levels rose, the moderate group might purchase more BMWs whereas the upper-income group might buy fewer 3-series as they traded up to a 5- or 7-series.) Clearly, <span>for some goods and some ranges of income, consumer income might not have an impact on purchase decision at all. Hence for those goods, income elasticity of demand is zero. Thinking back to our discussion of the demand curve, recall that we invoked the assumption of “holding all other things constant” when we plotted the relationship between p

#### Flashcard 1430499495180

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
any variable on the right-hand side of the demand function can serve as the basis for its own [...]
elasticity.

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any variable on the right-hand side of the demand function can serve as the basis for its own elasticity.

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4.4. Cross-price Elasticity of Demand: Substitutes and Complements
It should be clear by now that any variable on the right-hand side of the demand function can serve as the basis for its own elasticity. Recall that the price of another good might very well have an impact on the demand for a good or service, so we should be able to define an elasticity with respect to the other price, a

#### Flashcard 1430501330188

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
two goods whose cross-price elasticity of demand is negative are defined to be [...] .
complements

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two goods whose cross-price elasticity of demand is negative are defined to be complements . Typically, these goods would tend to be consumed together as a pair, such as gasoline and automobiles or houses and furniture

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4.4. Cross-price Elasticity of Demand: Substitutes and Complements
eer. When the price of one of your favorite brands of beer rises, what would you do? You would probably buy less of that brand and more of a cheaper brand, so the cross-price elasticity of demand would be positive. Alternatively, <span>two goods whose cross-price elasticity of demand is negative are defined to be complements . Typically, these goods would tend to be consumed together as a pair, such as gasoline and automobiles or houses and furniture. When automobile prices fall, we might expect the quantity of autos demanded to rise, and thus we might expect to see a rise in the demand for gasoline. Ultimately, though, whether two

#### Flashcard 1430503951628

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
For complements when the price of one good rises, the quantity demanded of the other good shifts [...].
downward and to the left

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For complements, however, the impact is in the other direction: When the price of one good rises, the quantity demanded of the other good shifts downward and to the left.

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4.4. Cross-price Elasticity of Demand: Substitutes and Complements
bbage together as a pair (i.e., that the price of coffee has a relation to the sales of cabbage). For substitute goods, an increase in the price of one good would shift the demand curve for the other good upward and to the right. <span>For complements, however, the impact is in the other direction: When the price of one good rises, the quantity demanded of the other good shifts downward and to the left. <span><body><html>

#### Flashcard 1430506310924

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
If a good is inferior, a rise in income would result in a [...] shift in the entire demand curve.
downward and leftward

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If a good is inferior, a rise in income would result in a downward and leftward shift in the entire demand curve.

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4.3. Income Elasticity of Demand: Normal and Inferior Goods
all other things constant” when we plotted the relationship between price and quantity demanded. One of the variables we held constant was consumer income. If income were to change, obviously the whole curve would shift one way or the other. <span>For normal goods, a rise in income would shift the entire demand curve upward and to the right, resulting in an increase in demand. If the good were inferior, however, a rise in income would result in a downward and leftward shift in the entire demand curve. <span><body><html>

#### Flashcard 1430507883788

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Often, economists use simple [...] to approximate real-world demand and supply functions in relevant ranges.
linear equations

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Often, economists use simple linear equations to approximate real-world demand and supply functions in relevant ranges.

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3.1. The Demand Function and the Demand Curve

#### Flashcard 1430530952460

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
is there some reasonable measure we can apply to the outcome of a competitive market that enables us to say whether that outcome is socially desirable?

Economists have developed two related concepts called [...] and [...] to address that question.

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is there some reasonable measure we can apply to the outcome of a competitive market that enables us to say whether that outcome is socially desirable? Economists have developed two related concepts called consumer surplus and producer surplus to address that question. We will begin with consumer surplus, which is a measure of how much net benefit buyers enjoy from the ability to participate in a particul

#### Original toplevel document

3.9. Consumer Surplus—Value minus Expenditure
crucial to have a sense of why we might care whether the market tends toward equilibrium. This question moves us into the normative, or evaluative, consideration of whether market equilibrium is desirable in any social sense. In other words, <span>is there some reasonable measure we can apply to the outcome of a competitive market that enables us to say whether that outcome is socially desirable? Economists have developed two related concepts called consumer surplus and producer surplus to address that question. We will begin with consumer surplus, which is a measure of how much net benefit buyers enjoy from the ability to participate in a particular market. To get an intuitive feel for this concept, consider the last thing you purchased. Maybe it was a cup of coffee, a new pair of shoes, or a new car. Whatever it was, think of

#### Flashcard 1430533311756

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Graphically, Consumer Surplus translates into the area [...]
under the consumer’s demand curve, up to and including the last unit consumed

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Graphically, this measure translates into the area under the consumer’s demand curve, up to and including the last unit consumed

#### Original toplevel document

3.9. Consumer Surplus—Value minus Expenditure
onal unit. This interpretation of the demand curve allows us to measure the total value of consuming any given quantity of a good: It is the sum of all the marginal values of each unit consumed, up to and including the last unit. <span>Graphically, this measure translates into the area under the consumer’s demand curve, up to and including the last unit consumed, as shown in Exhibit 12, in which the consumer is choosing to buy Q 1 units of the good at a price of P 1 . The marginal value of the Qth1 unit is clearly P 1 , because that is the h

#### Flashcard 1430535933196

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
[...] model is useful in explaining how price and quantity traded are determined and how external influences affect the values of those variables
The demand and supply

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The demand and supply model is useful in explaining how price and quantity traded are determined and how external influences affect the values of those variables

#### Original toplevel document

3. BASIC PRINCIPLES AND CONCEPTS
se a given amount of a good or service at a given price. Supply is the willingness of sellers to offer a given quantity of a good or service for a given price. Later, study on the theory of the firm will yield the supply curve. <span>The demand and supply model is useful in explaining how price and quantity traded are determined and how external influences affect the values of those variables. Buyers’ behavior is captured in the demand function and its graphical equivalent, the demand curve. This curve shows both the highest price buyers are willing to pay for each quantity, and the highest quantity buyers are willing and able to purchase at each price. Sellers’ behavior is captured in the supply function and its graphical equivalent, the supply curve. This curve shows simultaneously the lowest price sellers are willing to accept for each quantity and the highest quantity sellers are willing to offer at each price. If, at a given quantity, the highest price that buyers are willing to pay is equal to the lowest price that sellers are willing to accept, we say the market has reached it

#### Flashcard 1430537506060

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
consumers and producers both receive “a [...]” when they are allowed to engage in a mutually beneficial, voluntary exchange with one another
bargain

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consumers and producers both receive “a bargain” when they are allowed to engage in a mutually beneficial, voluntary exchange with one another

#### Original toplevel document

3.11. Total Surplus—Total Value minus Total Variable Cost
In the previous sections, we have seen that consumers and producers both receive “a bargain” when they are allowed to engage in a mutually beneficial, voluntary exchange with one another. For every unit up to the equilibrium unit traded, buyers would have been willing to pay more than they actually had to pay. Additionally, for every one of those units, sellers would ha

#### Flashcard 1430541438220

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
when the magnitude(ignoring algebraic sign) of the own-price elasticity coefficient has a value less than one, demand is defined to be [...]
inelastic

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when the magnitude(ignoring algebraic sign) of the own-price elasticity coefficient has a value less than one, demand is defined to be inelastic

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4.1. Own-Price Elasticity of Demand
ded by only 0.12 percent. Actually, that is not too different from empirical estimates of the actual demand elasticity for gasoline in the United States. When demand is not very sensitive to price, we say demand is inelastic . To be precise, <span>when the magnitude(ignoring algebraic sign) of the own-price elasticity coefficient has a value less than one, demand is defined to be inelastic. When that magnitude is greater than one, demand is defined to be elastic . And when the elasticity coefficient is equal to negative one, demand is said to be unit elastic , or unita

#### Flashcard 1430546156812

Tags
#auctions #cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4 #summary
Question
Dutch auction =
Descending price

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ions sell items that (generally) have a unique subjective value for each bidder. Ascending price auctions use an auctioneer to call out ever increasing prices until the last, highest bidder ultimately pays his/her bid price and buys the item. <span>Descending price, or Dutch, auctions begin at a very high price and then reduce that price until one bidder is willing to buy at that price. Second price sealed bid auctions are sometimes used to induce

#### Original toplevel document

SUMMARY
ven price, the quantity demanded exceeds the quantity supplied, there is excess demand and price will rise. If, at a given price, the quantity supplied exceeds the quantity demanded, there is excess supply and price will fall. <span>Sometimes auctions are used to seek equilibrium prices. Common value auctions sell items that have the same value to all bidders, but bidders can only estimate that value before the auction is completed. Overly optimistic bidders overestimate the true value and end up paying a price greater than that value. This result is known as the winner’s curse. Private value auctions sell items that (generally) have a unique subjective value for each bidder. Ascending price auctions use an auctioneer to call out ever increasing prices until the last, highest bidder ultimately pays his/her bid price and buys the item. Descending price, or Dutch, auctions begin at a very high price and then reduce that price until one bidder is willing to buy at that price. Second price sealed bid auctions are sometimes used to induce bidders to reveal their true reservation prices in private value auctions. Treasury notes and some other financial instruments are sold using a form of Dutch auction (called a single price auction) in which competitive and non-competitive bids are arrayed in descending price (increasing yield) order. The winning bidders all pay the same price, but marginal bidders might not be able to fill their entire order at the market clearing price. Markets that work freely can optimize society’s welfare, as measured by consumer surplus and producer surplus. Consumer surplus is the difference between the total value

#### Annotation 1430650227980

 #pompy_ciepla Co to jest ciepło ? Ciepło jest to forma wewnętrznej energii substancji.

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#### Annotation 1430651800844

 #pompy_ciepla Substancje zawierają energię cieplną, aż do temperatury zera absolutnego (0 K = -273,15°C).

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#### Annotation 1430652849420

 #pompy_ciepla Nawet powietrze o temperaturze -20°C zawiera ciepło, które mogą efektywnie wykorzystywać pompy ciepła.

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#### Annotation 1430654422284

 #pompy_ciepla Jeśli istnieje możliwość oddania energii innej substancji, powstaje strumień ciepła (przepływ ciepła). Strumień ten płynie zawsze w kierunku temperatury niższej (nigdy odwrotnie).

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#### Annotation 1430655995148

 #pompy_ciepla Fizyka pomp ciepła Pompy ciepła wykorzystują zjawisko przepływu ciepła, ale również zmianę stanu fizycznego substancji. Przykład. Jeżeli do gotującej się w naczyniu wody będziemy dalej dostarczać energię (ciepło), to cała woda wyparuje, a jej temperatura nie wzrośnie. Ilość energii związana ze zmianą stanu fizycznego substancji, jest „tajemnicą”, dzięki której pompa ciepła pozyskuje z „zimnego” źródła energię o użytecznym poziomie termicznym (którą można wykorzystać).

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Article 1430657568012

LEARNING OUTCOMES
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis

The candidate should be able to: describe consumer choice theory and utility theory; describe the use of indifference curves, opportunity sets, and budget constraints in decision making; calculate and interpret a budget constraint; determine a consumer’s equilibrium bundle of goods based on utility analysis; compare substitution and income effects; distinguish between normal goods and inferior goods and explain Giffen goods and Veblen goods in this context.

#### Flashcard 1430658878732

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis
Question

The candidate should be able to:

1. describe [...] and [...]

2. describe the use of indifference curves, opportunity sets, and budget constraints in decision making;

3. calculate and interpret a budget constraint;

4. determine a consumer’s equilibrium bundle of goods based on utility analysis;

5. compare substitution and income effects;

6. distinguish between normal goods and inferior goods and explain Giffen goods and Veblen goods in this context.

consumer choice theory and utility theory;

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LEARNING OUTCOMES
The candidate should be able to: describe consumer choice theory and utility theory; describe the use of indifference curves, opportunity sets, and budget constraints in decision making; calculate and interpret a budget constraint;

Article 1430662024460

1. INTRODUCTION
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis

By now it should be clear that economists are model builders. In the previous reading, we examined one of their most fundamental models, the model of demand and supply. And as we have seen, models begin with simplifying assumptions and then find the implications that can then be compared to real-world observations as a test of the model’s usefulness. In the model of demand and supply, we assumed the existence of a demand curve and a supply curve, as well as their respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm. This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introd

#### Flashcard 1430663335180

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis
Question

By now it should be clear that economists are [...] builders

model

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1. INTRODUCTION
By now it should be clear that economists are model builders. In the previous reading, we examined one of their most fundamental models, the model of demand and supply. And as we have seen, models begin with simplifying assumptions and then find

#### Flashcard 1430666480908

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis
Question

As we have seen, models begin with [...] and then find the implications that can then be compared to real-world observations as a test of the model’s usefulness.

simplifying assumptions

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1. INTRODUCTION
ad><head> By now it should be clear that economists are model builders. In the previous reading, we examined one of their most fundamental models, the model of demand and supply. And as we have seen, models begin with simplifying assumptions and then find the implications that can then be compared to real-world observations as a test of the model’s usefulness. In the model of demand and supply, we assumed the existence of a

#### Annotation 1430668840204

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis In the model of demand and supply, we assumed the existence of a demand curve and a supply curve, as well as their respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm.

1. INTRODUCTION
r most fundamental models, the model of demand and supply. And as we have seen, models begin with simplifying assumptions and then find the implications that can then be compared to real-world observations as a test of the model’s usefulness. <span>In the model of demand and supply, we assumed the existence of a demand curve and a supply curve, as well as their respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm. This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introduces utility theory, a building block of consumer choice th

#### Flashcard 1430670413068

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis
Question
Demand comes from the [...] and the [...], graphically represented by the indifference curve map.
utility function

budget constraint

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Open it
ir respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the <span>theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm.<span>

#### Original toplevel document

1. INTRODUCTION
r most fundamental models, the model of demand and supply. And as we have seen, models begin with simplifying assumptions and then find the implications that can then be compared to real-world observations as a test of the model’s usefulness. <span>In the model of demand and supply, we assumed the existence of a demand curve and a supply curve, as well as their respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm. This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introduces utility theory, a building block of consumer choice th

#### Annotation 1430674345228

 Reading 14 demand and supply analyisis: consumer demand #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introduces utility theory, a building block of consumer choice theory that provides a quantitative model for a consumer’s preferences and tastes. Section 4 surveys budget constraints and opportunity sets. Section 5 covers the determination of the consumer’s bundle of goods and how that may change in response to changes in income and prices. Section 6 examines substitution and income effects for different types of goods.

1. INTRODUCTION
y. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm. <span>This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introduces utility theory, a building block of consumer choice theory that provides a quantitative model for a consumer’s preferences and tastes. Section 4 surveys budget constraints and opportunity sets. Section 5 covers the determination of the consumer’s bundle of goods and how that may change in response to changes in income and prices. Section 6 examines substitution and income effects for different types of goods. A summary and practice problems conclude the reading. <span><body><html>

#### Flashcard 1430678277388

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis
Question
This reading is organized as follows:

Section 2 describes [...] in more detail.

Section 3 introduces utility theory, a building block of consumer choice theory that provides a quantitative model for a consumer’s preferences and tastes.

Section 4 surveys budget constraints and opportunity sets.

Section 5 covers the determination of the consumer’s bundle of goods and how that may change in response to changes in income and prices.

Section 6 examines substitution and income effects for different types of goods.
consumer choice theory

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This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introduces utility theory, a building block of consumer choice theory that provides a quantitative model for a consumer’s preferences and tastes.&#1

#### Original toplevel document

1. INTRODUCTION
y. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm. <span>This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introduces utility theory, a building block of consumer choice theory that provides a quantitative model for a consumer’s preferences and tastes. Section 4 surveys budget constraints and opportunity sets. Section 5 covers the determination of the consumer’s bundle of goods and how that may change in response to changes in income and prices. Section 6 examines substitution and income effects for different types of goods. A summary and practice problems conclude the reading. <span><body><html>

Article 1430679850252

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis

The introduction to demand and supply analysis in the previous reading basically assumed that the demand function exists, and focused on understanding its various characteristics and manifestations. In this reading, we address the foundations of demand and supply analysis and seek to understand the sources of consumer demand through the theory of the consumer, also known as consumer choice theory. Consumer choice theory can be defined as the branch of microeconomics that relates consumer demand curves to consumer preferences. Consumer choice theory begins with a fundamental model of how consumer preferences and tastes might be represented. It explores consumers’ willingness to trade off between two goods (or two baskets of goods), both of which the consumer finds beneficial. Consumer choice theory then recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income. In effect, consumer choice theory first models what the consumer would li

#### Annotation 1430681423116

 #av #b21 #pompy_ciepla Aby podgrzać 1 litr (kilogram) wody do punktu wrzenia, potrzeba 116 Wh (1-2). Kolejne 627 Wh są konieczne, aby całkowicie odparować wodę

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#### Flashcard 1430682995980

Question
So exactly what does the ~ E in Gauss’s law represent? It represents the [...] at each point on the surface under consideration.
total electric field

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So exactly what does the ~ E in Gauss’s law represent? It represents the total electric field at each point on the surface under consideration.

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#### Flashcard 1430684568844

Question
So exactly what does the ~ E in Gauss’s law represent? It represents the total electric field at [...] under consideration.
each point on the surface

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So exactly what does the ~ E in Gauss’s law represent? It represents the total electric field at each point on the surface under consideration.

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#### Flashcard 1430687452428

Tags
#bioinfo #publication #research #self
Question
FAAH reduces the production of known endogenous cannabinoids, specifically, [...] and 2-arachidonoylglycerol (2-AG)
anandamide (AEA)

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FAAH reduces the production of known endogenous cannabinoids, specifically, anandamide (AEA) and 2-arachidonoylglycerol (2-AG)

#### Original toplevel document

Molecular mechanisms involved in the side effects of fatty acid amide hydrolase inhibitors: a structural phenomics approach to proteome-wide cellular off-target deconvolution and disease association : npj Systems Biology and Applications
. 1 It is distributed in several of the major organs of the human body, but is also regionally distributed in the brain where it is believed to correlate with cannibinoid receptors. 2 In particular, it is believed that the overexpression of <span>FAAH reduces the production of known endogenous cannabinoids, specifically, anandamide (AEA) and 2-arachidonoylglycerol (2-AG). 3 This makes FAAH an attractive drug target, as inhibition of FAAH would, through the upregulation of AEA and 2-AG, elicit the effects of cannabinoid activation. Thus, FAAH inhibitors

#### Flashcard 1430689025292

Tags
#bioinfo #publication #research #self
Question
FAAH reduces the production of known endogenous cannabinoids, specifically, anandamide (AEA) and [...]
2-arachidonoylglycerol (2-AG)

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FAAH reduces the production of known endogenous cannabinoids, specifically, anandamide (AEA) and 2-arachidonoylglycerol (2-AG)

#### Original toplevel document

Molecular mechanisms involved in the side effects of fatty acid amide hydrolase inhibitors: a structural phenomics approach to proteome-wide cellular off-target deconvolution and disease association : npj Systems Biology and Applications
. 1 It is distributed in several of the major organs of the human body, but is also regionally distributed in the brain where it is believed to correlate with cannibinoid receptors. 2 In particular, it is believed that the overexpression of <span>FAAH reduces the production of known endogenous cannabinoids, specifically, anandamide (AEA) and 2-arachidonoylglycerol (2-AG). 3 This makes FAAH an attractive drug target, as inhibition of FAAH would, through the upregulation of AEA and 2-AG, elicit the effects of cannabinoid activation. Thus, FAAH inhibitors

#### Flashcard 1430691122444

Question
There are many ways to express Gauss’s law, and although notation differs among textbooks, the integral form is generally written like this: I S ~ E ^ nda ¼ q enc e 0 Gauss’s law for electric fields (integral form). The left side of this equation is no more than a mathematical description of [...], whereas the right side is the total amount of charge contained within that surface divided by a constant called the permittivity of free space
the electric flux – the number of electric field lines – passing through a closed surface S

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ough notation differs among textbooks, the integral form is generally written like this: I S ~ E ^ nda ¼ q enc e 0 Gauss’s law for electric fields (integral form). The left side of this equation is no more than a mathematical description of <span>the electric flux – the number of electric field lines – passing through a closed surface S, whereas the right side is the total amount of charge contained within that surface divided by a constant called the permittivity of free space<span><body><html>

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#### Flashcard 1430692695308

Question
There are many ways to express Gauss’s law, and although notation differs among textbooks, the integral form is generally written like this: $$\oint \vec{E}\hat{n}\space da = \frac{q_{enc}}{\epsilon_{0}}$$ Gauss’s law for electric fields (integral form). The left side of this equation is no more than a mathematical description of the electric flux – the number of electric field lines – passing through a closed surface S, whereas the right side is the [...]
total amount of charge contained within that surface divided by a constant called the permittivity of free space

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s law for electric fields (integral form). The left side of this equation is no more than a mathematical description of the electric flux – the number of electric field lines – passing through a closed surface S, whereas the right side is the <span>total amount of charge contained within that surface divided by a constant called the permittivity of free space<span><body><html>

#### Original toplevel document (pdf)

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#### Flashcard 1430694530316

Question
Using Gauss's law and given information about a distribution of electric charge, you can
Find the electric flux through a surface enclosing that charge

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How is Gauss’s law useful? There are two basic types of problems that you can solve using this equation: (1) Give n information about a distribution of electric charge, you can find the electric flux through a surface enclosing that charge. (2) Give n information about the electric flux through a closed surface, you can find the total electric charge enclosed by that surface

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#### Flashcard 1430696889612

Question
Using Gauss's law and given information about the electric flux through a closed surface
You can find the total electric charge enclosed by that surface

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ou can solve using this equation: (1) Give n information about a distribution of electric charge, you can find the electric flux through a surface enclosing that charge. (2) Give n information about the electric flux through a closed surface, <span>you can find the total electric charge enclosed by that surface<span><body><html>

#### Original toplevel document (pdf)

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#### Annotation 1430699511052

 #av #b21 #pompy_ciepla Sposób działania pompy ciepła (PC) 1 – w parowniku, czynnik chłodniczy odparowuje w niskich temperaturach - pochłania ciepło 2 – sprężanie (kompresja) podnosi temperaturę i ciśnienie pary czynnika chłodniczego 3 – w skraplaczu, dzięki kondensacji para czynnika chłodniczego oddaje ciepło 4 – zawór dławiący (rozprężny) - czynnik chłodniczy jest rozprężany, osiąga ciśnienie i temperaturę wyjściową Parowanie i skraplanie odbywa się przy stałym ciśnieniu.

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#### Annotation 1430701083916

 ~ E is a vector quantity with magnitude directly proportional to force and with direction given by the direction of the force on a positive test charge.

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Open it
two important characteris tics of the electric field: (1) ~ E is a vector quantity with magnitude directly proportional to force and with direction given by the direction of the force on a positive test charge. (2) ~ E ha s units of newtons per coulomb (N/C), which are the same as volts per meter (V/m), since volts ¼ newtons · meters/coulombs

#### Original toplevel document (pdf)

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#### Annotation 1430702656780

 E has units of newtons per coulomb (N/C), which are the same as volts per meter (V/m), since volts = newtons * meters/coulombs

#### Parent (intermediate) annotation

Open it
ad><head>two important characteris tics of the electric field: (1) ~ E is a vector quantity with magnitude directly proportional to force and with direction given by the direction of the force on a positive test charge. (2) ~ E ha s units of newtons per coulomb (N/C), which are the same as volts per meter (V/m), since volts ¼ newtons · meters/coulombs<html>

#### Original toplevel document (pdf)

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#### Annotation 1430705016076

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis The introduction to demand and supply analysis in the previous reading basically assumed that the demand function exists, and focused on understanding its various characteristics and manifestations.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
The introduction to demand and supply analysis in the previous reading basically assumed that the demand function exists, and focused on understanding its various characteristics and manifestations. In this reading, we address the foundations of demand and supply analysis and seek to understand the sources of consumer demand through the theory of the consumer, also known as consume

#### Flashcard 1430707113228

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#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis
Question

[...] can be defined as the branch of microeconomics that relates [...] to consumer preferences.

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2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
ous characteristics and manifestations. In this reading, we address the foundations of demand and supply analysis and seek to understand the sources of consumer demand through the theory of the consumer, also known as consumer choice theory. <span>Consumer choice theory can be defined as the branch of microeconomics that relates consumer demand curves to consumer preferences. Consumer choice theory begins with a fundamental model of how consumer prefe

#### Flashcard 1430709472524

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#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis
Question

Consumer choice theory begins with a fundamental model of how [...] might be represented.

consumer preferences and tastes

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2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
consumer, also known as consumer choice theory. Consumer choice theory can be defined as the branch of microeconomics that relates consumer demand curves to consumer preferences. Consumer choice theory begins with a fundamental model of how <span>consumer preferences and tastes might be represented. It explores consumers’ willingness to trade off between two goods (or two baskets of goods), both of which the consumer finds beneficial. Consumer choice theory th

#### Annotation 1430711831820

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis Consumer theory explores consumers’ willingness to trade off between two goods (or two baskets of goods), both of which the consumer finds beneficial.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
mer choice theory can be defined as the branch of microeconomics that relates consumer demand curves to consumer preferences. Consumer choice theory begins with a fundamental model of how consumer preferences and tastes might be represented. <span>It explores consumers’ willingness to trade off between two goods (or two baskets of goods), both of which the consumer finds beneficial. Consumer choice theory then recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income. In effect, consumer ch

#### Flashcard 1430714191116

Tags
#cfa #cfa-level-1 #economics #study-session-4
Question
Study session 4 focuses on
Microeconomics

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#### Annotation 1430716288268

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis Consumer choice theory recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
oice theory begins with a fundamental model of how consumer preferences and tastes might be represented. It explores consumers’ willingness to trade off between two goods (or two baskets of goods), both of which the consumer finds beneficial. <span>Consumer choice theory then recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income. In effect, consumer choice theory first models what the consumer would like to consume, and then it examines what the consumer can consume with limited income. Finally, by superimposing

#### Flashcard 1430717336844

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#bioinfo #publication #research #self
Question
we discover that FAAH inhibitors may bind to the [place and protien?] and several other BAs, and thus disrupt their cellular functions
dimerization interface of NMDA receptor (NMDAR)

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we discover that FAAH inhibitors may bind to the dimerization interface of NMDA receptor (NMDAR) and several other BAs, and thus disrupt their cellular functions

#### Original toplevel document

Molecular mechanisms involved in the side effects of fatty acid amide hydrolase inhibitors: a structural phenomics approach to proteome-wide cellular off-target deconvolution and disease association : npj Systems Biology and Applications
inding profile in the cellular context and on a structural proteome scale, and investigate the roles of these off-targets in impacting human physiology and pathology using text mining-based phenomics analysis. Using this integrative approach, <span>we discover that FAAH inhibitors may bind to the dimerization interface of NMDA receptor (NMDAR) and several other BAs, and thus disrupt their cellular functions. Specifically, the malfunction of the NMDAR is associated with a wide spectrum of brain disorders that are directly related to the observed side effects of FAAH inhibitors. This finding

#### Flashcard 1430720482572

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis
Question
in Consumer choice theory, consumers must purchase them at [...] and with a [...]
given market prices

limited income.

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Consumer choice theory recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income.

#### Original toplevel document

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
oice theory begins with a fundamental model of how consumer preferences and tastes might be represented. It explores consumers’ willingness to trade off between two goods (or two baskets of goods), both of which the consumer finds beneficial. <span>Consumer choice theory then recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income. In effect, consumer choice theory first models what the consumer would like to consume, and then it examines what the consumer can consume with limited income. Finally, by superimposing

#### Annotation 1430723366156

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis In effect, consumer choice theory first models what the consumer would like to consume, and then it examines what the consumer can consume with limited income.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
o goods (or two baskets of goods), both of which the consumer finds beneficial. Consumer choice theory then recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income. <span>In effect, consumer choice theory first models what the consumer would like to consume, and then it examines what the consumer can consume with limited income. Finally, by superimposing what the consumer would like to do onto what the consumer can do, we arrive at a model of what the consumer would do under various circumstances. Then by chang

#### Flashcard 1430724939020

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis
Question
In effect, consumer choice theory first models what the consumer would like to consume, and then it examines [...]
what the consumer can consume with limited income.

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In effect, consumer choice theory first models what the consumer would like to consume, and then it examines what the consumer can consume with limited income.

#### Original toplevel document

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
o goods (or two baskets of goods), both of which the consumer finds beneficial. Consumer choice theory then recognizes that to consume a set of goods and services, consumers must purchase them at given market prices and with a limited income. <span>In effect, consumer choice theory first models what the consumer would like to consume, and then it examines what the consumer can consume with limited income. Finally, by superimposing what the consumer would like to do onto what the consumer can do, we arrive at a model of what the consumer would do under various circumstances. Then by chang

#### Annotation 1430726511884

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis Finally, by superimposing what the consumer would like to do onto what the consumer can do, we arrive at a model of what the consumer would do under various circumstances. Then by changing prices and income, the model develops consumer demand as a logical extension of consumer choice theory.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
es, consumers must purchase them at given market prices and with a limited income. In effect, consumer choice theory first models what the consumer would like to consume, and then it examines what the consumer can consume with limited income. <span>Finally, by superimposing what the consumer would like to do onto what the consumer can do, we arrive at a model of what the consumer would do under various circumstances. Then by changing prices and income, the model develops consumer demand as a logical extension of consumer choice theory. Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about why consumers have the tastes and preferences they ha

#### Annotation 1430728084748

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about why consumers have the tastes and preferences they have.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
to what the consumer can do, we arrive at a model of what the consumer would do under various circumstances. Then by changing prices and income, the model develops consumer demand as a logical extension of consumer choice theory. <span>Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about why consumers have the tastes and preferences they have. It still makes assumptions, but does so at a more fundamental level. Instead of assuming the existence of a demand curve, it derives a demand curve as an implication of assumptions abou

#### Flashcard 1430729657612

Question
1 Gauss’s law for electric fields In Maxwell’s Equations, you’ll encounter two kinds of electric field: the [...] and the induced electric field produced by a changing magnetic field.
electrostatic field produced by electric charge

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1 Gauss’s law for electric fields In Maxwell’s Equations, you’ll encounter two kinds of electric field: the electrostatic field produced by electric charge and the induced electric field produced by a changing magnetic field.

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#### Flashcard 1430731230476

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis
Question
Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about [...].
why consumers have the tastes and preferences they have

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Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about why consumers have the tastes and preferences they have.

#### Original toplevel document

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
to what the consumer can do, we arrive at a model of what the consumer would do under various circumstances. Then by changing prices and income, the model develops consumer demand as a logical extension of consumer choice theory. <span>Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about why consumers have the tastes and preferences they have. It still makes assumptions, but does so at a more fundamental level. Instead of assuming the existence of a demand curve, it derives a demand curve as an implication of assumptions abou

#### Flashcard 1430732803340

Question
1 Gauss’s law for electric fields In Maxwell’s Equations, you’ll encounter two kinds of electric field: the electrostatic field produced by electric charge and the [...]
induced electric field produced by a changing magnetic field.

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#### Parent (intermediate) annotation

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1 Gauss’s law for electric fields In Maxwell’s Equations, you’ll encounter two kinds of electric field: the electrostatic field produced by electric charge and the induced electric field produced by a changing magnetic field.

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#### Annotation 1430734376204

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis Consumer choice theory still makes assumptions, but does so at a more fundamental level. Instead of assuming the existence of a demand curve, it derives a demand curve as an implication of assumptions about preferences.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
and as a logical extension of consumer choice theory. Although consumer choice theory attempts to model consumers’ preferences or tastes, it does not have much to say about why consumers have the tastes and preferences they have. <span>It still makes assumptions, but does so at a more fundamental level. Instead of assuming the existence of a demand curve, it derives a demand curve as an implication of assumptions about preferences. Note that economists are not attempting to predict the behavior of any single consumer in any given circumstance. Instead, they are attempting to build a consistent model of aggregate m

#### Flashcard 1430735949068

Question
Electric charge produces an electric field, and the flux of that field passing through any closed surface is proportional to the [...].
total charge contained within that surface

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Electric charge produces an electric field, and the flux of that field passing through any closed surface is proportional to the total charge contained within that surface.

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#### Flashcard 1430738308364

Question
Electric charge produces an electric field, and the [...] of that field passing through any closed surface is proportional to the total charge contained within that surface.
flux

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Electric charge produces an electric field, and the flux of that field passing through any closed surface is proportional to the total charge contained within that surface.

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#### Annotation 1430739881228

 Electric field lines must originate on positive charge and terminate on negative charge

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Open it
Electric field lines must originate on positive charge and terminate on negative charge. The net electric field at any point is the vector sum of all electric fields present at that point. Electric field lines can never cross, since that would indicate that the field p

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#### Annotation 1430741454092

 The net electric field at any point is the vector sum of all electric fields present at that point

#### Parent (intermediate) annotation

Open it
Electric field lines must originate on positive charge and terminate on negative charge. The net electric field at any point is the vector sum of all electric fields present at that point. Electric field lines can never cross, since that would indicate that the field points in two different directions at the same location

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#### Annotation 1430743026956

 Electric field lines can never cross

#### Parent (intermediate) annotation

Open it
Electric field lines must originate on positive charge and terminate on negative charge. The net electric field at any point is the vector sum of all electric fields present at that point. Electric field lines can never cross, since that would indicate that the field points in two different directions at the same location

#### Original toplevel document (pdf)

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#### Annotation 1430745386252

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis economists are not attempting to predict the behavior of any single consumer in any given circumstance. Instead, they are attempting to build a consistent model of aggregate market behavior in the form of a market demand curve.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
astes and preferences they have. It still makes assumptions, but does so at a more fundamental level. Instead of assuming the existence of a demand curve, it derives a demand curve as an implication of assumptions about preferences. Note that <span>economists are not attempting to predict the behavior of any single consumer in any given circumstance. Instead, they are attempting to build a consistent model of aggregate market behavior in the form of a market demand curve. Once we model the consumer’s preferences, we then recognize that consumption is governed not only by preferences but also by the consumer’s budget constraint (the ability

#### Annotation 1430747221260

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis Once we model the consumer’s preferences, we then recognize that consumption is governed not only by preferences but also by the consumer’s budget constraint (the ability to purchase various combinations of goods and services, given his or her income).

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
t economists are not attempting to predict the behavior of any single consumer in any given circumstance. Instead, they are attempting to build a consistent model of aggregate market behavior in the form of a market demand curve. <span>Once we model the consumer’s preferences, we then recognize that consumption is governed not only by preferences but also by the consumer’s budget constraint (the ability to purchase various combinations of goods and services, given his or her income). Putting preference theory together with the budget constraint gives us the demand curve we are seeking. In the following sections, we explore these topics in turn. <span><

#### Flashcard 1430749056268

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis
Question
Consumption is governed not only by preferences but also by the consumer’s [...]
budget constraint

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Once we model the consumer’s preferences, we then recognize that consumption is governed not only by preferences but also by the consumer’s budget constraint (the ability to purchase various combinations of goods and services, given his or her income).

#### Original toplevel document

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
t economists are not attempting to predict the behavior of any single consumer in any given circumstance. Instead, they are attempting to build a consistent model of aggregate market behavior in the form of a market demand curve. <span>Once we model the consumer’s preferences, we then recognize that consumption is governed not only by preferences but also by the consumer’s budget constraint (the ability to purchase various combinations of goods and services, given his or her income). Putting preference theory together with the budget constraint gives us the demand curve we are seeking. In the following sections, we explore these topics in turn. <span><

#### Annotation 1430755609868

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis Putting preference theory together with the budget constraint gives us the demand curve we are seeking.

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
l the consumer’s preferences, we then recognize that consumption is governed not only by preferences but also by the consumer’s budget constraint (the ability to purchase various combinations of goods and services, given his or her income). <span>Putting preference theory together with the budget constraint gives us the demand curve we are seeking. In the following sections, we explore these topics in turn. <span><body><html>

#### Flashcard 1430757182732

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #study-session-4-microeconomics-analysis
Question
Putting preference theory together with the budget constraint gives us the [...] we are seeking.
demand curve

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Putting preference theory together with the budget constraint gives us the demand curve we are seeking.

#### Original toplevel document

2. CONSUMER THEORY: FROM PREFERENCES TO DEMAND FUNCTIONS
l the consumer’s preferences, we then recognize that consumption is governed not only by preferences but also by the consumer’s budget constraint (the ability to purchase various combinations of goods and services, given his or her income). <span>Putting preference theory together with the budget constraint gives us the demand curve we are seeking. In the following sections, we explore these topics in turn. <span><body><html>

Article 1430758755596

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4

At the foundation of consumer behavior theory is the assumption that the consumer knows his or her own tastes and preferences and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle. To build a consistent model of consumer choice, we need to begin with a few assumptions about preferences. 3.1. Axioms of the Theory of Consumer Choice First, let us be clear about the consumption opportunities over which the consumer is assumed to have preferences. We define a consumption bundle or consumption basket as a specific combination of the goods and services that the consumer would like to consume. We could almost literally conceive of a basket containing a given amount of, say, shoes, pizza, medical care, theater tickets, piano lessons, and all the other things that a consumer might enjoy consuming. Each of those goods and services can be represented in a given basket by a non-negative quantity, respectively, of all the possible goods and

#### Annotation 1430760852748

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3 #study-session-4 At the foundation of consumer behavior theory is the assumption that the consumer knows his or her own tastes and preferences and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
At the foundation of consumer behavior theory is the assumption that the consumer knows his or her own tastes and preferences and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle. To build a consistent model of consumer choice, we need to begin with a few assumptions about preferences. 3.1. Axioms of the Theory of Consumer Choice

#### Flashcard 1430763998476

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3 #study-session-4
Question
At the foundation of consumer behavior theory is the assumption that the consumer knows [...] and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle.
his or her own tastes and preferences

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At the foundation of consumer behavior theory is the assumption that the consumer knows his or her own tastes and preferences and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
At the foundation of consumer behavior theory is the assumption that the consumer knows his or her own tastes and preferences and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle. To build a consistent model of consumer choice, we need to begin with a few assumptions about preferences. 3.1. Axioms of the Theory of Consumer Choice

#### Annotation 1430765571340

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 To build a consistent model of consumer choice, we need to begin with the axioms of the theory of consumer choice

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
t the foundation of consumer behavior theory is the assumption that the consumer knows his or her own tastes and preferences and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle. <span>To build a consistent model of consumer choice, we need to begin with a few assumptions about preferences. 3.1. Axioms of the Theory of Consumer Choice First, let us be clear about the consumption opportunities over which the consumer is assumed to have prefe

#### Flashcard 1430768192780

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#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #section-3-utility-theory-modeling-preferences-and-tastes #study-session-4-microeconomics-analysis
Question
To build a consistent model of consumer choice, we need to begin with the [...]
axioms of the theory of consumer choice

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To build a consistent model of consumer choice, we need to begin with the axioms of the theory of consumer choice

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
t the foundation of consumer behavior theory is the assumption that the consumer knows his or her own tastes and preferences and tends to take rational actions that result in a more preferred consumption “bundle” over a less preferred bundle. <span>To build a consistent model of consumer choice, we need to begin with a few assumptions about preferences. 3.1. Axioms of the Theory of Consumer Choice First, let us be clear about the consumption opportunities over which the consumer is assumed to have prefe

### W systemie Windows 10 użytkownik konta standardowego (konta należące do lokalnej grupy Użytkownicy) posiada:

1. Uprawnienia do modyfikowania własnego konta.
2. Nieograniczony dostęp do własnych plików i folderów.
3. Ograniczony dostęp do pozostałych zasobów komputera.
4. Standardowi użytkownicy mogą m.in.
a) Instalować aktualizacje za pomocą usługi Windows Update.
b) Instalować sterowniki pobrane z usługi Windows Update lub lokalnego magazynu sterowników komputera.
c) Przeglądać ustawienia systemowe.
d) Podłączać urządzenia Bluetooth do komputera.
e) Resetować połączenia sieciowe i przeprowadzać ich typowe operacje diagnostyczne.
f) Konfigurować połącz enia sieci Wi-Fi.
g) Zmienić strefę czasową.

### Natomiast konta administratorów (konta należące do lokalnej grupy Administratorzy) posiadają nieograniczone uprawnienia (przy czym przed skorzystaniem z nich administrator musi potwierdzić swoją decyzję), obejmujące: 1. Wszystkie uprawnienia konta standardowego użytkownika. 2. Możliwość zarządzania kontami innych użytkowników. 3. Uprawnienia do zmian konfiguracji komputera. 4. Dostęp do wszystkich plików. 5. Możliwość instalowania sprzętu i oprogramowania. Jeżeli użytkownik należy do wielu grup, jego wynikowe uprawnienia są sumą uprawnień nadanych poszczególnym grupom. Jeżeli jednak którejś z grup jawnie odmówiono uprawnienia, użytkownik nie będzie mógł wykonać danej operacji.

#### pdf

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# W systemach Windows zarządzanie uprawnieniami upraszczają dwa mechanizmy: 1. Mechanizm dziedziczenia, dzięki któremu uprawnienia nadane obiektowi nadrzędnemu są domyślnie dziedziczone przez obiekty podrzędne. 2. Mechanizm predefiniowanych zestawów uprawnień, dzięki którym można nadawać lub odbierać nie pojedyncze uprawnienia (takie jak uprawnienie do wyświetlania zawartości folderów), ale ich funkcjonalne zestawy (np.uprawnienie do odczytywania folderów i znajdujących się w nich plików)

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#### Annotation 1430777629964

 #pompy_ciepla zero absolutne to 0 K lub -273,15°C

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Substancje zawierają energię cieplną, aż do temperatury zera absolutnego (0 K = -273,15°C).

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#### Flashcard 1430780775692

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#pompy_ciepla
Question
Substancje zawierają energię cieplną, aż do temperatury [...] (0 K = -273,15°C).
zera absolutnego

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Substancje zawierają energię cieplną, aż do temperatury zera absolutnego (0 K = -273,15°C).

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#### Flashcard 1430782348556

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#pompy_ciepla
Question
zero absolutne to [...] K lub -273,15°C
0

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zero absolutne to 0 K lub -273,15°C

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#pompy_ciepla
Question
zero absolutne to 0 K lub -[...]°C
273,15

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zero absolutne to 0 K lub -273,15°C

#### Original toplevel document (pdf)

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#### Annotation 1430785494284

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-2-consumer-theory-from-preferences-to-demand-function #section-3-utility-theory-modeling-preferences-and-tastes #study-session-4-microeconomics-analysis We define a consumption bundle or consumption basket as a specific combination of the goods and services that the consumer would like to consume.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
o begin with a few assumptions about preferences. 3.1. Axioms of the Theory of Consumer Choice First, let us be clear about the consumption opportunities over which the consumer is assumed to have preferences. <span>We define a consumption bundle or consumption basket as a specific combination of the goods and services that the consumer would like to consume. We could almost literally conceive of a basket containing a given amount of, say, shoes, pizza, medical care, theater tickets, piano lessons, and all the other things that a consumer mi

#### Annotation 1430789164300

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 We could almost literally conceive of a basket containing a given amount of, say, shoes, pizza, medical care, theater tickets, piano lessons, and all the other things that a consumer might enjoy consuming. Each of those goods and services can be represented in a given basket by a non-negative quantity, respectively, of all the possible goods and services. Any given basket could have zero of one or more of those goods.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
about the consumption opportunities over which the consumer is assumed to have preferences. We define a consumption bundle or consumption basket as a specific combination of the goods and services that the consumer would like to consume. <span>We could almost literally conceive of a basket containing a given amount of, say, shoes, pizza, medical care, theater tickets, piano lessons, and all the other things that a consumer might enjoy consuming. Each of those goods and services can be represented in a given basket by a non-negative quantity, respectively, of all the possible goods and services. Any given basket could have zero of one or more of those goods. A distinctly different consumption bundle would contain all of the same goods but in different quantities, again allowing for the possibility of a zero quantity of one or more of the go

#### Annotation 1430792310028

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 A distinctly different consumption bundle would contain all of the same goods but in different quantities, again allowing for the possibility of a zero quantity of one or more of the goods.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
mer might enjoy consuming. Each of those goods and services can be represented in a given basket by a non-negative quantity, respectively, of all the possible goods and services. Any given basket could have zero of one or more of those goods. <span>A distinctly different consumption bundle would contain all of the same goods but in different quantities, again allowing for the possibility of a zero quantity of one or more of the goods. For example, bundle Amight have the same amount of all but one of the goods and services as bundle B but a different amount of that one. Bundles A and B would be considered two distinct

#### Flashcard 1430795193612

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
A distinctly different consumption bundle would contain all of the same goods but [...], again allowing for the possibility of a [...] of one or more of the goods.
in different quantities

zero quantity

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A distinctly different consumption bundle would contain all of the same goods but in different quantities, again allowing for the possibility of a zero quantity of one or more of the goods.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
mer might enjoy consuming. Each of those goods and services can be represented in a given basket by a non-negative quantity, respectively, of all the possible goods and services. Any given basket could have zero of one or more of those goods. <span>A distinctly different consumption bundle would contain all of the same goods but in different quantities, again allowing for the possibility of a zero quantity of one or more of the goods. For example, bundle Amight have the same amount of all but one of the goods and services as bundle B but a different amount of that one. Bundles A and B would be considered two distinct

#### Annotation 1430797552908

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Bundle A might have the same amount of all but one of the goods and services as bundle B but a different amount of that one. Bundles A and B would be considered two distinct bundles.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ave zero of one or more of those goods. A distinctly different consumption bundle would contain all of the same goods but in different quantities, again allowing for the possibility of a zero quantity of one or more of the goods. For example, <span>bundle Amight have the same amount of all but one of the goods and services as bundle B but a different amount of that one. Bundles A and B would be considered two distinct bundles. Given this understanding of consumption bundles, the first assumption we make about a given consumer’s preferences is simply that she is able to make a comparison between a

#### Annotation 1430799912204

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Given the understanding of consumption bundles (what defines a bundle), the first assumption we make about a given consumer’s preferences is simply that she is able to make a comparison between any two possible bundles. That is, given bundles A and B, she must be able to say either that she prefers A to B, or she prefers B to A, or she is indifferentbetween the two. This is the assumption of complete preferences (also known as the axiom of completeness), and although it does not appear to be a particularly strong assumption, it is not trivial either.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ntity of one or more of the goods. For example, bundle Amight have the same amount of all but one of the goods and services as bundle B but a different amount of that one. Bundles A and B would be considered two distinct bundles. <span>Given this understanding of consumption bundles, the first assumption we make about a given consumer’s preferences is simply that she is able to make a comparison between any two possible bundles. That is, given bundles A and B, she must be able to say either that she prefers A to B, or she prefers B to A, or she is indifferentbetween the two. This is the assumption of complete preferences (also known as the axiom of completeness), and although it does not appear to be a particularly strong assumption, it is not trivial either. It rules out the possibility that she could just say, “I recognize that the two bundles are different, but in fact they are so different that I simply cannot compare them at all.” A lov

#### Flashcard 1430802271500

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
Within bundles, the first assumption we make about a given consumer’s preferences is simply that she is able to [...].
make a comparison between any two possible bundles

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Given the understanding of consumption bundles (what defines a bundle), the first assumption we make about a given consumer’s preferences is simply that she is able to make a comparison between any two possible bundles. That is, given bundles A and B, she must be able to say either that she prefers A to B, or she prefers B to A, or she is indifferentbetween the two. This is the assumption of complete

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ntity of one or more of the goods. For example, bundle Amight have the same amount of all but one of the goods and services as bundle B but a different amount of that one. Bundles A and B would be considered two distinct bundles. <span>Given this understanding of consumption bundles, the first assumption we make about a given consumer’s preferences is simply that she is able to make a comparison between any two possible bundles. That is, given bundles A and B, she must be able to say either that she prefers A to B, or she prefers B to A, or she is indifferentbetween the two. This is the assumption of complete preferences (also known as the axiom of completeness), and although it does not appear to be a particularly strong assumption, it is not trivial either. It rules out the possibility that she could just say, “I recognize that the two bundles are different, but in fact they are so different that I simply cannot compare them at all.” A lov

#### Flashcard 1430804630796

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
Given bundles A and B, a consumer must be able to say either that he prefers A to B, or she prefers B to A, or he is indifferent between the two.

This is the assumption of [...] also known as [...]
complete preferences (also known as the axiom of completeness)

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she is able to make a comparison between any two possible bundles. That is, given bundles A and B, she must be able to say either that she prefers A to B, or she prefers B to A, or she is indifferentbetween the two. This is the assumption of <span>complete preferences (also known as the axiom of completeness), and although it does not appear to be a particularly strong assumption, it is not trivial either.<span><body><html>

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ntity of one or more of the goods. For example, bundle Amight have the same amount of all but one of the goods and services as bundle B but a different amount of that one. Bundles A and B would be considered two distinct bundles. <span>Given this understanding of consumption bundles, the first assumption we make about a given consumer’s preferences is simply that she is able to make a comparison between any two possible bundles. That is, given bundles A and B, she must be able to say either that she prefers A to B, or she prefers B to A, or she is indifferentbetween the two. This is the assumption of complete preferences (also known as the axiom of completeness), and although it does not appear to be a particularly strong assumption, it is not trivial either. It rules out the possibility that she could just say, “I recognize that the two bundles are different, but in fact they are so different that I simply cannot compare them at all.” A lov

#### Annotation 1430806990092

 #av #b21 #energetyka_geotermalna 0ºC – odpowiada temperaturze krzepnięcia wody lub temperaturze topnienia lodu

#### pdf

cannot see any pdfs

#### Annotation 1430808038668

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Axiom of complete preferences rules out the possibility that a consumer could just say, “I recognize that the two bundles are different, but in fact they are so different that I simply cannot compare them at all.”

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
refers B to A, or she is indifferentbetween the two. This is the assumption of complete preferences (also known as the axiom of completeness), and although it does not appear to be a particularly strong assumption, it is not trivial either. <span>It rules out the possibility that she could just say, “I recognize that the two bundles are different, but in fact they are so different that I simply cannot compare them at all.” A loving father might very well say that about his two children. In effect, the father neither prefers one to the other nor is, in any meaningful sense, indifferent between the two. The

#### Annotation 1430810397964

 #av #b21 #energetyka_geotermalna 100ºC – odpowiada temperaturze wrzenia wody lub temperaturze kondensacji pary wodnej przy ciśnieniu 1013 mbar.

#### pdf

cannot see any pdfs

#### Annotation 1430811446540

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 We assume that when comparing any three distinct bundles, A, B, and C, if A is preferred to B, and simultaneously B is preferred to C, then it must be true that A is preferred to C. This assumption is referred to as the assumption of transitive preferences , and it is assumed to hold for indifference as well as for strict preference.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
that about his two children. In effect, the father neither prefers one to the other nor is, in any meaningful sense, indifferent between the two. The assumption of complete preferences cannot accommodate such a response. Second, <span>we assume that when comparing any three distinct bundles, A, B, and C, if A is preferred to B, and simultaneously B is preferred to C, then it must be true that A is preferred to C. This assumption is referred to as the assumption of transitive preferences , and it is assumed to hold for indifference as well as for strict preference. This is a somewhat stronger assumption because it is essentially an assumption of rationality. We would say that if a consumer prefers a skiing holiday to a diving holiday and a diving

#### Annotation 1430813805836

 #av #b21 #energetyka_geotermalna Skala Kelvina nazywana jest również bezwzględną skalą temperatury, ponieważ wychodzi z temperatury zera bezwzględnego (0 K) - nie ma ujemnych temperatur.

#### pdf

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#### Flashcard 1430814854412

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
We assume that when comparing any three distinct bundles, A, B, and C, if A is preferred to B, and simultaneously B is preferred to C, then it must be true that A is preferred to C. This assumption is referred to as the assumption of [...] , and it is assumed to hold for indifference as well as for strict preference.

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an>We assume that when comparing any three distinct bundles, A, B, and C, if A is preferred to B, and simultaneously B is preferred to C, then it must be true that A is preferred to C. This assumption is referred to as the assumption of transitive preferences , and it is assumed to hold for indifference as well as for strict preference.<span><body><html>

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
that about his two children. In effect, the father neither prefers one to the other nor is, in any meaningful sense, indifferent between the two. The assumption of complete preferences cannot accommodate such a response. Second, <span>we assume that when comparing any three distinct bundles, A, B, and C, if A is preferred to B, and simultaneously B is preferred to C, then it must be true that A is preferred to C. This assumption is referred to as the assumption of transitive preferences , and it is assumed to hold for indifference as well as for strict preference. This is a somewhat stronger assumption because it is essentially an assumption of rationality. We would say that if a consumer prefers a skiing holiday to a diving holiday and a diving

#### Annotation 1430816427276

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Assumption of transitive preferences is a somewhat stronger assumption than complete preferences because it is essentially an assumption of rationality.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
and simultaneously B is preferred to C, then it must be true that A is preferred to C. This assumption is referred to as the assumption of transitive preferences , and it is assumed to hold for indifference as well as for strict preference. <span>This is a somewhat stronger assumption because it is essentially an assumption of rationality. We would say that if a consumer prefers a skiing holiday to a diving holiday and a diving holiday to a backpacking holiday and at the same time prefers a backpacking holiday to a skiing

#### Annotation 1430821145868

 Axiom of transitive preferences #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 We would say that if a consumer prefers a skiing holiday to a diving holiday and a diving holiday to a backpacking holiday and at the same time prefers a backpacking holiday to a skiing holiday, then he is acting irrationally. Transitivity rules out this kind of inconsistency. If you have studied psychology, however, you will no doubt have seen experiments that show subjects violating this assumption, especially in cases of many complex options being offered to them.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
sumption is referred to as the assumption of transitive preferences , and it is assumed to hold for indifference as well as for strict preference. This is a somewhat stronger assumption because it is essentially an assumption of rationality. <span>We would say that if a consumer prefers a skiing holiday to a diving holiday and a diving holiday to a backpacking holiday and at the same time prefers a backpacking holiday to a skiing holiday, then he is acting irrationally. Transitivity rules out this kind of inconsistency. If you have studied psychology, however, you will no doubt have seen experiments that show subjects violating this assumption, especially in cases of many complex options being offered to them. When we state these axioms, we are not saying that we believe them actually to be true in every instance, but we assume them for the sake of building a model. A model is a

#### Annotation 1430823505164

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 When we state these axioms, we are not saying that we believe them actually to be true in every instance, but we assume them for the sake of building a model

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
les out this kind of inconsistency. If you have studied psychology, however, you will no doubt have seen experiments that show subjects violating this assumption, especially in cases of many complex options being offered to them. <span>When we state these axioms, we are not saying that we believe them actually to be true in every instance, but we assume them for the sake of building a model. A model is a simplification of the real world phenomena we are trying to understand. Necessarily, axioms must be at some level inaccurate and incomplete representations of the phenomen

#### Annotation 1430826126604

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 A model is a simplification of the real world phenomena we are trying to understand.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
on, especially in cases of many complex options being offered to them. When we state these axioms, we are not saying that we believe them actually to be true in every instance, but we assume them for the sake of building a model. <span>A model is a simplification of the real world phenomena we are trying to understand. Necessarily, axioms must be at some level inaccurate and incomplete representations of the phenomena we are trying to model. If that were not the case, the “model” would not be a simpli

#### Annotation 1430827699468

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Necessarily, axioms must be at some level inaccurate and incomplete representations of the phenomena we are trying to model. If that were not the case, the “model” would not be a simplification; it would be a reflection of the complex system we are attempting to model and thus would not help our understanding very much.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
hen we state these axioms, we are not saying that we believe them actually to be true in every instance, but we assume them for the sake of building a model. A model is a simplification of the real world phenomena we are trying to understand. <span>Necessarily, axioms must be at some level inaccurate and incomplete representations of the phenomena we are trying to model. If that were not the case, the “model” would not be a simplification; it would be a reflection of the complex system we are attempting to model and thus would not help our understanding very much. Finally, we usually assume that in at least one of the goods, the consumer could never have so much that she would refuse any more, even if it were free. This assumption is

#### Annotation 1430829272332

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Finally, we usually assume that in at least one of the goods, the consumer could never have so much that she would refuse any more, even if it were free. This assumption is sometimes referred to as the “more is better” assumption or the assumption of non-satiation .

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
henomena we are trying to model. If that were not the case, the “model” would not be a simplification; it would be a reflection of the complex system we are attempting to model and thus would not help our understanding very much. <span>Finally, we usually assume that in at least one of the goods, the consumer could never have so much that she would refuse any more, even if it were free. This assumption is sometimes referred to as the “more is better” assumption or the assumption of non-satiation . Clearly, for some things, more is worse, such as air pollution or trash. In those cases, the good is then the removal of that bad, so we can usually reframe our model to accommodate the

#### Flashcard 1430830845196

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
Finally, we assume that in at least one of the goods, the consumer could never have so much that she would refuse any more, even if it were free. This assumption is sometimes referred to as the “more is better” assumption or the assumption of [...] .

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we usually assume that in at least one of the goods, the consumer could never have so much that she would refuse any more, even if it were free. This assumption is sometimes referred to as the “more is better” assumption or the assumption of <span>non-satiation .<span><body><html>

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
henomena we are trying to model. If that were not the case, the “model” would not be a simplification; it would be a reflection of the complex system we are attempting to model and thus would not help our understanding very much. <span>Finally, we usually assume that in at least one of the goods, the consumer could never have so much that she would refuse any more, even if it were free. This assumption is sometimes referred to as the “more is better” assumption or the assumption of non-satiation . Clearly, for some things, more is worse, such as air pollution or trash. In those cases, the good is then the removal of that bad, so we can usually reframe our model to accommodate the

#### Annotation 1430833204492

 Non-satiation #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Clearly, for some things, more is worse, such as air pollution or trash. In those cases, the good is then the removal of that bad, so we can usually reframe our model to accommodate the non-satiation assumption.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
e that in at least one of the goods, the consumer could never have so much that she would refuse any more, even if it were free. This assumption is sometimes referred to as the “more is better” assumption or the assumption of non-satiation . <span>Clearly, for some things, more is worse, such as air pollution or trash. In those cases, the good is then the removal of that bad, so we can usually reframe our model to accommodate the non-satiation assumption. In particular, when we later discuss the concept of risk for an investor, we will recognize that for many, more risk is worse than less risk, all else being equal. In that analysis, we

#### Annotation 1430835563788

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 when we later discuss the concept of risk for an investor, we will recognize that for many, more risk is worse than less risk, all else being equal. In that analysis, we shall model the willingness of the investor to trade off between increased investment returns and increased certainty, which is the absence of risk.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
non-satiation . Clearly, for some things, more is worse, such as air pollution or trash. In those cases, the good is then the removal of that bad, so we can usually reframe our model to accommodate the non-satiation assumption. In particular, <span>when we later discuss the concept of risk for an investor, we will recognize that for many, more risk is worse than less risk, all else being equal. In that analysis, we shall model the willingness of the investor to trade off between increased investment returns and increased certainty, which is the absence of risk. EXAMPLE 1 Axioms Concerning Preferences Helen Smith enjoys, among other things, eating sausages. She also enjoys reading Marcel Proust. Smith is co

#### Annotation 1430837136652

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Bomber enjoys, eating sausages. He also enjoys reading Shakespeare. Bomber is confronted with two baskets: Basket A, contains several goods and a package of sausages, and B, contains identical quantities of the other goods as Basket A, but instead of the sausages, it contains a book by Shakespeare. When asked which basket she prefers, he replies, “I like them both, but sausages and a book by Shakespeare are so different that I cannot compare the two baskets.” Determine whether Bomber is obeying all the axioms of preference theory. Solution: Smith is violating the assumption of complete preferences.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
at analysis, we shall model the willingness of the investor to trade off between increased investment returns and increased certainty, which is the absence of risk. EXAMPLE 1 Axioms Concerning Preferences <span>Helen Smith enjoys, among other things, eating sausages. She also enjoys reading Marcel Proust. Smith is confronted with two baskets: Basket A, which contains several other goods and a package of sausages, and B, which contains identical quantities of the other goods as Basket A, but instead of the sausages, it contains a book by Proust. When asked which basket she prefers, she replies, “I like them both, but sausages and a book by Proust are so different that I simply cannot compare the two baskets.” Determine whether Smith is obeying all the axioms of preference theory. Solution: Smith is violating the assumption of complete preferences. This assumption states that a consumer must be able to compare any two baskets of goods, either preferring one to the other or being indifferent between the two. If she complies with th

#### Flashcard 1430838971660

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question

Bomber enjoys, eating sausages. He also enjoys reading Shakespeare. Bomber is confronted with two baskets: Basket A, contains several goods and a package of sausages, and B, contains identical quantities of the other goods as Basket A, but instead of the sausages, it contains a book by Shakespeare.

When asked which basket she prefers, he replies, “I like them both, but sausages and a book by Shakespeare are so different that I cannot compare the two baskets.”

Is Bomber is obeying all the axioms of preference theory?

Bomber is violating the assumption of complete preferences.

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rs, he replies, “I like them both, but sausages and a book by Shakespeare are so different that I cannot compare the two baskets.” Determine whether Bomber is obeying all the axioms of preference theory. Solution: <span>Smith is violating the assumption of complete preferences. <span><body><html>

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
at analysis, we shall model the willingness of the investor to trade off between increased investment returns and increased certainty, which is the absence of risk. EXAMPLE 1 Axioms Concerning Preferences <span>Helen Smith enjoys, among other things, eating sausages. She also enjoys reading Marcel Proust. Smith is confronted with two baskets: Basket A, which contains several other goods and a package of sausages, and B, which contains identical quantities of the other goods as Basket A, but instead of the sausages, it contains a book by Proust. When asked which basket she prefers, she replies, “I like them both, but sausages and a book by Proust are so different that I simply cannot compare the two baskets.” Determine whether Smith is obeying all the axioms of preference theory. Solution: Smith is violating the assumption of complete preferences. This assumption states that a consumer must be able to compare any two baskets of goods, either preferring one to the other or being indifferent between the two. If she complies with th

#### Annotation 1431534177548

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner. Let us consider presenting him with all possible bundles of all the possible goods and services he could consider. Now suppose we give him paper and pencil and ask him to assign a number to each of the bundles. (The assumption of completeness ensures that he, in fact, could do that.) All he must do is write a number on a paper and lay it on each of the bundles. The only restrictions are these: Comparing any two bundles, if he prefers one to the other, he must assign a higher number to the bundle he prefers. And if he is indifferent between them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ifferent between the two. If she complies with this assumption, she must be able to compare these two baskets of goods. 3.2. Representing the Preference of a Consumer: The Utility Function <span>Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner. Let us consider presenting him with all possible bundles of all the possible goods and services he could consider. Now suppose we give him paper and pencil and ask him to assign a number to each of the bundles. (The assumption of completeness ensures that he, in fact, could do that.) All he must do is write a number on a paper and lay it on each of the bundles. The only restrictions are these: Comparing any two bundles, if he prefers one to the other, he must assign a higher number to the bundle he prefers. And if he is indifferent between them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of pape

#### Annotation 1431535750412

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner.

#### Parent (intermediate) annotation

Open it
Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner. Let us consider presenting him with all possible bundles of all the possible goods and services he could consider. Now suppose we give him paper and pencil and ask him to assign a numbe

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ifferent between the two. If she complies with this assumption, she must be able to compare these two baskets of goods. 3.2. Representing the Preference of a Consumer: The Utility Function <span>Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner. Let us consider presenting him with all possible bundles of all the possible goods and services he could consider. Now suppose we give him paper and pencil and ask him to assign a number to each of the bundles. (The assumption of completeness ensures that he, in fact, could do that.) All he must do is write a number on a paper and lay it on each of the bundles. The only restrictions are these: Comparing any two bundles, if he prefers one to the other, he must assign a higher number to the bundle he prefers. And if he is indifferent between them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of pape

#### Flashcard 1431536798988

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
Armed with the assumptions of [...], [...] , and [...] , we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner.
completeness

transitivity

non-satiation

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ifferent between the two. If she complies with this assumption, she must be able to compare these two baskets of goods. 3.2. Representing the Preference of a Consumer: The Utility Function <span>Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner. Let us consider presenting him with all possible bundles of all the possible goods and services he could consider. Now suppose we give him paper and pencil and ask him to assign a number to each of the bundles. (The assumption of completeness ensures that he, in fact, could do that.) All he must do is write a number on a paper and lay it on each of the bundles. The only restrictions are these: Comparing any two bundles, if he prefers one to the other, he must assign a higher number to the bundle he prefers. And if he is indifferent between them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of pape

#### Annotation 1431539158284

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Now suppose we give a consumer paper and pencil and ask him to assign a number to each of the bundles according to his preference. (The assumption of completeness ensures that he, in fact, could do that.)

#### Parent (intermediate) annotation

Open it
on-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner. Let us consider presenting him with all possible bundles of all the possible goods and services he could consider. <span>Now suppose we give him paper and pencil and ask him to assign a number to each of the bundles. (The assumption of completeness ensures that he, in fact, could do that.) All he must do is write a number on a paper and lay it on each of the bundles. The only restrictions are these: Comparing any two bundles, if he prefers one to the other, he must assign

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ifferent between the two. If she complies with this assumption, she must be able to compare these two baskets of goods. 3.2. Representing the Preference of a Consumer: The Utility Function <span>Armed with the assumptions of completeness, transitivity, and non-satiation, we ask whether there might be a way for a given consumer to represent his own preferences in a consistent manner. Let us consider presenting him with all possible bundles of all the possible goods and services he could consider. Now suppose we give him paper and pencil and ask him to assign a number to each of the bundles. (The assumption of completeness ensures that he, in fact, could do that.) All he must do is write a number on a paper and lay it on each of the bundles. The only restrictions are these: Comparing any two bundles, if he prefers one to the other, he must assign a higher number to the bundle he prefers. And if he is indifferent between them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of pape

#### Annotation 1431543352588

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 If we ask a consumer to asseign a number to each bundle of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. <span>Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles. Under “reasonable assumptions” (the definition of which is not necessary for us to delve into at this level), it is possible to come up with a rule that translates the quantities of goo

#### Annotation 1431545711884

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 If we ask a consumer to assign a number to each bundle of course, each of these possible bundles has a specific quantity of each of the goods and services.

#### Parent (intermediate) annotation

Open it
If we ask a consumer to asseign a number to each bundle of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. <span>Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles. Under “reasonable assumptions” (the definition of which is not necessary for us to delve into at this level), it is possible to come up with a rule that translates the quantities of goo

#### Flashcard 1431547546892

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
If we ask a consumer to assign a number to each bundle of course, each of these possible bundles has a specific [...]
quantity of each of the goods and services.

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
If we ask a consumer to assign a number to each bundle of course, each of these possible bundles has a specific quantity of each of the goods and services.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. <span>Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles. Under “reasonable assumptions” (the definition of which is not necessary for us to delve into at this level), it is possible to come up with a rule that translates the quantities of goo

#### Annotation 1431549119756

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 When a consumer assigns a number to his prefered bundles, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles.

#### Parent (intermediate) annotation

Open it
If we ask a consumer to asseign a number to each bundle of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. <span>Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles. Under “reasonable assumptions” (the definition of which is not necessary for us to delve into at this level), it is possible to come up with a rule that translates the quantities of goo

#### Flashcard 1431551479052

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
When a consumer assigns a number to his prefered bundles, we have two sets of numbers. One set consists of [...]. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles.
the pieces of paper he has laid on the bundles

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
When a consumer assigns a number to his prefered bundles, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
them, he must assign the same number to both. Other than that, he is free to begin with any number he wants for the first bundle he considers. In this way, he is simply ordering the bundles according to his preferences over them. <span>Of course, each of these possible bundles has a specific quantity of each of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles. Under “reasonable assumptions” (the definition of which is not necessary for us to delve into at this level), it is possible to come up with a rule that translates the quantities of goo

#### Annotation 1431553051916

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 Under “reasonable assumptions” (the definition of which is not necessary for us to delve into at this level), it is possible to come up with a rule that translates the quantities of goods in each basket into the number that our consumer has assigned to each basket. That “assignment rule” is called the utility function of that particular consumer.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ch of the goods and services. So, we have two sets of numbers. One set consists of the pieces of paper he has laid on the bundles. The other is the set of numerical quantities of the goods that are contained in each of the respective bundles. <span>Under “reasonable assumptions” (the definition of which is not necessary for us to delve into at this level), it is possible to come up with a rule that translates the quantities of goods in each basket into the number that our consumer has assigned to each basket. That “assignment rule” is called the utility function of that particular consumer. The single task of that utility function is to translate each basket of goods and services into a number that rank orders the baskets according to our particular consumer’s preferences.

#### Annotation 1431556984076

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 The single task of the utility function is to translate each basket of goods and services into a number that rank orders the baskets according to our particular consumer’s preferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
, it is possible to come up with a rule that translates the quantities of goods in each basket into the number that our consumer has assigned to each basket. That “assignment rule” is called the utility function of that particular consumer. <span>The single task of that utility function is to translate each basket of goods and services into a number that rank orders the baskets according to our particular consumer’s preferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it. In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of th

#### Flashcard 1431559343372

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
The single task of the utility function is to translate each basket of goods and services into a number that [...] according to [...]
rank orders the baskets according to a particular consumer’s preferences

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
The single task of the utility function is to translate each basket of goods and services into a number that rank orders the baskets according to our particular consumer’s preferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that mo

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
, it is possible to come up with a rule that translates the quantities of goods in each basket into the number that our consumer has assigned to each basket. That “assignment rule” is called the utility function of that particular consumer. <span>The single task of that utility function is to translate each basket of goods and services into a number that rank orders the baskets according to our particular consumer’s preferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it. In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of th

#### Flashcard 1431561702668

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
[...] are quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it.

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
ility function is to translate each basket of goods and services into a number that rank orders the baskets according to our particular consumer’s preferences. The number itself is referred to as the utility of that basket and is measured in <span>utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it.<span><body><html>

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
, it is possible to come up with a rule that translates the quantities of goods in each basket into the number that our consumer has assigned to each basket. That “assignment rule” is called the utility function of that particular consumer. <span>The single task of that utility function is to translate each basket of goods and services into a number that rank orders the baskets according to our particular consumer’s preferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it. In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of th

#### Annotation 1431564061964

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of the respective goods and services in the bundles. In the case of two goods—say, ounces of wine (W) and slices of bread (B)—a utility function might be simply Equation (2)  U = f(W,B) = WB or the product of the number of ounces of wine and the number of slices of bread. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it. <span>In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of the respective goods and services in the bundles. In the case of two goods—say, ounces of wine (W) and slices of bread (B)—a utility function might be simply Equation (2)  U = f(W,B) = WB or the product of the number of ounces of wine and the number of slices of bread. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils. The important point to note is that the utility function is just a ranking of bundles of goods. If someone were to replace all those pieces of paper with new numbers that m

#### Flashcard 1431565634828

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question

We can represent the utility function as

U=f(Qx1,Qx2,...,Qxn)

where the Qs are the quantities of [...].

each of the respective goods and services in the bundles

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of the respective goods and services in the bundles. In the case of two goods—say, ounces of wine (W) and slices of bread (B)—a utility function might be simply Equation (2)  U = f(W,B) = WB or the

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it. <span>In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of the respective goods and services in the bundles. In the case of two goods—say, ounces of wine (W) and slices of bread (B)—a utility function might be simply Equation (2)  U = f(W,B) = WB or the product of the number of ounces of wine and the number of slices of bread. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils. The important point to note is that the utility function is just a ranking of bundles of goods. If someone were to replace all those pieces of paper with new numbers that m

#### Annotation 1431567994124

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 U = f(W,B) = WB or the product of the number of ounces of wine and the number of slices of bread. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils

#### Parent (intermediate) annotation

Open it
where the Qs are the quantities of each of the respective goods and services in the bundles. In the case of two goods—say, ounces of wine (W) and slices of bread (B)—a utility function might be simply Equation (2)  <span>U = f(W,B) = WB or the product of the number of ounces of wine and the number of slices of bread. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils.<span><body><html>

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ferences. The number itself is referred to as the utility of that basket and is measured in utils , which are just quantities of happiness, or well-being, or whatever comes to mind such that more of it is better than less of it. <span>In general, we can represent the utility function as Equation (1)  U=f(Qx1,Qx2,...,Qxn) where the Qs are the quantities of each of the respective goods and services in the bundles. In the case of two goods—say, ounces of wine (W) and slices of bread (B)—a utility function might be simply Equation (2)  U = f(W,B) = WB or the product of the number of ounces of wine and the number of slices of bread. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils. The important point to note is that the utility function is just a ranking of bundles of goods. If someone were to replace all those pieces of paper with new numbers that m

#### Annotation 1431571401996

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 An important point to note is that the utility function is just a ranking of bundles of goods. If someone were to replace all those pieces of paper with new numbers that maintained the same ranking, then the new set of numbers would be just as useful a utility function as the first in describing our consumer’s preferences. This characteristic of utility functions is called an ordinal, as contrasted to a cardinal, ranking. Ordinal rankings are weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundles.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ead. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils. <span>The important point to note is that the utility function is just a ranking of bundles of goods. If someone were to replace all those pieces of paper with new numbers that maintained the same ranking, then the new set of numbers would be just as useful a utility function as the first in describing our consumer’s preferences. This characteristic of utility functions is called an ordinal, as contrasted to a cardinal, ranking. Ordinal rankings are weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundles. 3.3. Indifference Curves: The Graphical Portrayal of the Utility Function It will be convenient for us to represent our consumer’s preferences gr

#### Flashcard 1431573761292

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
Utility functions is [...], as contrasted to a [...] , ranking.

ordinal

cardinal

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
es of paper with new numbers that maintained the same ranking, then the new set of numbers would be just as useful a utility function as the first in describing our consumer’s preferences. This characteristic of utility functions is called an <span>ordinal, as contrasted to a cardinal, ranking. Ordinal rankings are weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundl

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ead. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils. <span>The important point to note is that the utility function is just a ranking of bundles of goods. If someone were to replace all those pieces of paper with new numbers that maintained the same ranking, then the new set of numbers would be just as useful a utility function as the first in describing our consumer’s preferences. This characteristic of utility functions is called an ordinal, as contrasted to a cardinal, ranking. Ordinal rankings are weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundles. 3.3. Indifference Curves: The Graphical Portrayal of the Utility Function It will be convenient for us to represent our consumer’s preferences gr

#### Flashcard 1431576120588

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
[...] rankings are weaker measures than [...] rankings
Ordinal

cardinal

status measured difficulty not learned 37% [default] 0

#### Parent (intermediate) annotation

Open it
e same ranking, then the new set of numbers would be just as useful a utility function as the first in describing our consumer’s preferences. This characteristic of utility functions is called an ordinal, as contrasted to a cardinal, ranking. <span>Ordinal rankings are weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundles.<span><body><html>

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
ead. The utility of a bundle containing 4 ounces of wine along with 2 slices of bread would equal 8 utils, and it would rank lower than a bundle containing 3 ounces of wine along with 3 slices of bread, which would yield 9 utils. <span>The important point to note is that the utility function is just a ranking of bundles of goods. If someone were to replace all those pieces of paper with new numbers that maintained the same ranking, then the new set of numbers would be just as useful a utility function as the first in describing our consumer’s preferences. This characteristic of utility functions is called an ordinal, as contrasted to a cardinal, ranking. Ordinal rankings are weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundles. 3.3. Indifference Curves: The Graphical Portrayal of the Utility Function It will be convenient for us to represent our consumer’s preferences gr

#### Annotation 1431578479884

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 To represent our consumer’s preferences graphically, not just mathematically, we have the concept of an indifference curve , which represents all the combinations of two goods such that the consumer is entirely indifferent among them.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundles. 3.3. Indifference Curves: The Graphical Portrayal of the Utility Function <span>It will be convenient for us to represent our consumer’s preferences graphically, not just mathematically. To that end, we introduce the concept of an indifference curve , which represents all the combinations of two goods such that the consumer is entirely indifferent among them. This is how we construct such a curve: Consider bundles that contain only two goods so that we can use a two-dimensional graph to represent them—as in Exhibit 1, where a particular bund

#### Flashcard 1431580314892

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
To represent our consumer’s preferences graphically, not just mathematically, we have the concept of an [...]
indifference curve

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To represent our consumer’s preferences graphically, not just mathematically, we have the concept of an indifference curve , which represents all the combinations of two goods such that the consumer is entirely indifferent among them.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
weaker measures than cardinal rankings because they do not allow the calculation and ranking of the differences between bundles. 3.3. Indifference Curves: The Graphical Portrayal of the Utility Function <span>It will be convenient for us to represent our consumer’s preferences graphically, not just mathematically. To that end, we introduce the concept of an indifference curve , which represents all the combinations of two goods such that the consumer is entirely indifferent among them. This is how we construct such a curve: Consider bundles that contain only two goods so that we can use a two-dimensional graph to represent them—as in Exhibit 1, where a particular bund

#### Annotation 1431581887756

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 This is how we construct an indifference curve: Consider bundles that contain only two goods so that we can use a two-dimensional graph to represent them, where a particular bundle containing Wa ounces of wine along with Ba slices of bread is represented as a single point, a.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
t our consumer’s preferences graphically, not just mathematically. To that end, we introduce the concept of an indifference curve , which represents all the combinations of two goods such that the consumer is entirely indifferent among them. <span>This is how we construct such a curve: Consider bundles that contain only two goods so that we can use a two-dimensional graph to represent them—as in Exhibit 1, where a particular bundle containing W a ounces of wine along with B a slices of bread is represented as a single point, a. The assumption of non-satiation (more is always better) ensures that all bundles lying directly above, directly to the right of, or both above and to the right (more wine and more bread

#### Flashcard 1431584247052

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
This is how we construct an indifference curve: Consider bundles that contain only [...] so that we can use a two-dimensional graph to represent them.
two goods

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#### Parent (intermediate) annotation

Open it
This is how we construct an indifference curve: Consider bundles that contain only two goods so that we can use a two-dimensional graph to represent them, where a particular bundle containing W a ounces of wine along with B a slices of bread is represented as a single point,

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
t our consumer’s preferences graphically, not just mathematically. To that end, we introduce the concept of an indifference curve , which represents all the combinations of two goods such that the consumer is entirely indifferent among them. <span>This is how we construct such a curve: Consider bundles that contain only two goods so that we can use a two-dimensional graph to represent them—as in Exhibit 1, where a particular bundle containing W a ounces of wine along with B a slices of bread is represented as a single point, a. The assumption of non-satiation (more is always better) ensures that all bundles lying directly above, directly to the right of, or both above and to the right (more wine and more bread

#### Annotation 1431586868492

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 The assumption of non-satiation ensures that, in an indifference curve, all bundles lying directly above, directly to the right of, or both above and to the right of point a must be preferred to bundle a.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
er bundles that contain only two goods so that we can use a two-dimensional graph to represent them—as in Exhibit 1, where a particular bundle containing W a ounces of wine along with B a slices of bread is represented as a single point, a. <span>The assumption of non-satiation (more is always better) ensures that all bundles lying directly above, directly to the right of, or both above and to the right (more wine and more bread) of point a must be preferred to bundle a. That set of bundles is called the “preferred-to-bundle-a” set. Correspondingly, all the bundles that lie directly below, to the left of, and both below and to the left of bundle a must

#### Flashcard 1431588703500

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Question
The assumption of non-satiation ensures that, in an indifference curve, all bundles lying [...], to the [...] of point a must be preferred to bundle a.
above

right

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#### Parent (intermediate) annotation

Open it
The assumption of non-satiation ensures that, in an indifference curve, all bundles lying directly above, directly to the right of, or both above and to the right of point a must be preferred to bundle a.

#### Original toplevel document

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
er bundles that contain only two goods so that we can use a two-dimensional graph to represent them—as in Exhibit 1, where a particular bundle containing W a ounces of wine along with B a slices of bread is represented as a single point, a. <span>The assumption of non-satiation (more is always better) ensures that all bundles lying directly above, directly to the right of, or both above and to the right (more wine and more bread) of point a must be preferred to bundle a. That set of bundles is called the “preferred-to-bundle-a” set. Correspondingly, all the bundles that lie directly below, to the left of, and both below and to the left of bundle a must

#### Annotation 1431591587084

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 The assumption of non-satiation (more is always better) ensures that all bundles lying directly above, directly to the right of, or both above and to the right (more wine and more bread) of point a must be preferred to bundle a. That set of bundles is called the “preferred-to-bundle-a” set. Correspondingly, all the bundles that lie directly below, to the left of, and both below and to the left of bundle a must yield less utility and therefore would be called the “dominated-by-bundle-a” set.

3. UTILITY THEORY: MODELING PREFERENCES AND TASTES
er bundles that contain only two goods so that we can use a two-dimensional graph to represent them—as in Exhibit 1, where a particular bundle containing W a ounces of wine along with B a slices of bread is represented as a single point, a. <span>The assumption of non-satiation (more is always better) ensures that all bundles lying directly above, directly to the right of, or both above and to the right (more wine and more bread) of point a must be preferred to bundle a. That set of bundles is called the “preferred-to-bundle-a” set. Correspondingly, all the bundles that lie directly below, to the left of, and both below and to the left of bundle a must yield less utility and therefore would be called the “dominated-by-bundle-a” set. Exhibit 1. Showing Preferences Graphically Note: A given bundle of two goods is represented as a single point, a, in the two-dimensional graph. Non-satiati

#### Annotation 1431595257100

 #cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4

#### Flashcard 1431599189260

Tags
#cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4

Question
In this Indifference curve, what happens with all the bundles that lie in the gray area?
They are prefered to bundle a

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#### Annotation 1431601024268

 #av #b21 #pompy_ciepla Praktycznie, każde urządzenie chłodzące można wykorzystać również do ogrzewania, a każdą pompę ciepła – do chłodzenia.

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#### Annotation 1431602072844

 #av #b21 #pompy_ciepla Entalpia – określa zawartość energii w układzie termodynamicznym, oznaczana jako: H, I [kJ; Wh]; entalpia właściwa: h, i [kJ/kg, Wh/kg]. Entalpia, ze starogreckiego: „en” – „w” i „thalpein” – „rozgrzewać”.

#### pdf

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#### Annotation 1431603121420

 #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4 A given bundle of two goods is represented as a single point, a, in the two-dimensional graph. Non-satiation allows us to rank-order many, but not all, other bundles, relative to a, leaving some questions unanswered.