Electronic Self-checkout System Essay -- Technology, Cashier Checkout

Various exact investigations have presumed that a customer’s attribution of the reason for a postponement fundamentally influences its passionate outcomes (see Taylor, 1994; Tom and Lucey, 1995). As indicated by these examinations, clients are more unsatisfied with longer than anticipated holds up brought about by challenges that the store could have helped (for example wasteful checkout work force, understaffing, inability to give express checkouts) than with delays because of outer factors, for example, irregular varieties in store swarming, till breakdowns, the hour of day (a few periods are definitely busier than others) or the nearness of clients with a lot of shopping. This was particularly evident if little exertion with respect to the specialist organization was expected to improve the circumstance or potentially the issue making the postpone was a customary event. It showed up, subsequently, that the explanations behind a long line were significant determinants of con sumer loyalty or disappointment, not simply the delay’s term. The Psychology of Combining Queues Joining lines have demonstrated not to be a decent procedure for overseeing lines in markets and grocery stores. Studies have demonstrated that despite the fact that consolidating lines have been fruitful in some help associations, these strategies have demonstrated to have negative outcomes in markets. Among the components that cause postponements of clients who are in line at the checkout counter in supermarkets is management’s endeavor to consolidate lines. In opposition to normal estimations, there are explanations behind accepting that joining lines, particularly lines of clients in checkout lines in supermarkets, may now and again be counterproductive. Rothkopf and Rech (1987) in their class had one member refering to the act of combini... ...e administration increasingly significant and were happy to pay substantially more for it when they discovered there were more individuals behind the places that were held for them. There exists an all inclusive human inclination to find out around ones self through examination with others (Gilbert, Price and Allan, 1995). Clients in checkout lines will in general contrast their situation in line and those of different clients. Be that as it may, seeing individuals behind is to some degree comfort since ―there are individuals more terrible off than meâ€â€", in this way making the experience less difficult. The examination laid out three arrangements of variables (line factors, individual elements, and situational factors) that may shape the degree of social correlations, every one of which is tried. Hkust and Hkust (2002) communicated that constrained research contemplates have been directed to decide how administration holds up can be controlled. To control the time customers’ hold up in line,

Lord Of The Flies Essays (1067 words) - English-language Films

Ruler of the Flies A running topic in Lord of the Flies is that man is savage on the most fundamental level, in every case at last returning to an insidious and crude nature. The pattern of man's ascent to power, or exemplary nature, and his unavoidable go wrong is a significant point that book demonstrates over and over, frequently contrasting man and characters from the Bible to give a progressively clear image of his plunge. Ruler Of The Flies represents this fall in various habits, extending from the outline of the mindset of genuine crude man to the impressions of a degenerate sailor in limbo. The tale is the account of a gathering of young men of various foundations who are marooned on an obscure island when their plane crashes. As the young men attempt to compose and define an arrangement to get saved, they start to isolate and because of the dispute a band of savage ancestral trackers is framed. In the long run the abandoned young men in Lord of the Flies for the most part shake off cultivated conduct: (Riley 1: 119). At the point when the disarray at long last prompts a manhunt [for Ralph], the peruser understands that in spite of the solid sense of British character and politeness that has been imparted in the young for the duration of their lives, the young men have retreated and indicated the fundamental savage side existent in all people. Golding detects that organizations and request forced from without are brief, yet man's silliness and inclination for obliteration are suffering (Riley 1: 119). The tale shows the peruser that it is so natural to return to the malice nature inborn in man. On the off chance that a gathering of very much molded school young men can eventually end up submitting different outrageous tragedies, one can envision what grown-ups, pioneers of society, can do under the weights of attempting to keep up world relations. Ruler of the Flies' worry of wickedness is with the end goal that it contacts the nerve of contemporary repulsiveness as no English epic of its time has done; it takes us, through imagery, into a universe of dynamic, multiplying underhanded which is seen, one feels, as the regular condition of man and which will undoubtedly help the peruser to remember the most abominable signs of Nazi relapse (Riley 1: 120). In the novel, Simon is a quiet fellow who attempts to show the young men that there is no beast on the island aside from the feelings of trepidation that the young men have. Simon attempts to express reality: there is a monster, yet 'it's just us' (Baker 11). At the point when he makes this disclosure, he is disparaged. This is an uncanny corresponding to the misconception that Christ needed to manage for an amazing duration. Later in the story, the savage trackers are pursuing a pig. When they murder the pig, they put its head on a stick and Simon encounters a revelation where he sees the lasting fall which is the focal truth of our history: the destruction of reason and the arrival of... franticness in spirits injured by dread (Baker 12). As Simon races to the open air fire to tell the young men of his disclosure, he is hit in the side with a lance, his prediction dismissed and the word he wished to spread disregarded. Simon tumbles to the ground dead and is portrayed as lovely and unadulterated. The portrayal of his demise, the way where he passed on, and the reason for which he kicked the bucket are surprisingly like an incredible conditions and extreme end. The significant distinction is that Christ passed on the cross, while Simon was skewered. In any case, a peruser acquainted with the Book of scriptures reviews that Christ was wounded in the side with an a lance prior to his execution. William Golding talks about man's ability for dread and weakness. In the novel, the young men on the island first experience a normal dread of being abandoned on an unknown island without the direction of grown-ups. When the young men start to compose and start to feel progressively grown-up such as themselves, the dread of beasts dominates. It is reasonable that young men extending in ages from babies to youthful adolescents would have fears of beasts, particularly when it is taken into thought that the youngsters are abandoned on the island. The creator wishes to appear, in any case, that

Build Your Brand Through Social Media Strategy

Build Your Brand Through Social Media Strategy If there is something that is cited as most important for both business-to-business (B2B) and business-to-consumer (B2C) fields, it is creating brand awareness. In fact, the more structured and defined the presentation of the brand, the more it subsequently draws attention to itself, thus creating a network of loyal customers.The more structured and defined the presentation of the brand, the more it subsequently draws attention to itself, thus creating a network of loyal customers. Photo by Patrick Tomasso on Unsplash.Social media are at the center of our personal and professional everyday life; it has been proved that nearly 2.1 billion people have social media accounts and are active in them. Targeting this huge market is a crucial step for businesses that want to build brand awareness and expand sales. And while most marketers agree its an almost necessary step to create a social media strategy, brand consistency across all marketing touchpoints remains tough, let alone elaboratin g it for each social media channel. Still, its a challenge taken and the results can be highly successful for every brand. Many recent researches like the one by Riswan Tarigan published in ResearchGate showcase that marketing via social media can give impact to a companys revenue; the effect of social media toward a companys brand awareness is crucial.Building brand awareness through social media starts by defining what is, in fact, a brand in total and how this can be effectively communicated online in a strong and consistent way. Those brand qualities are then distilled into strategy tips that best work together and can really shape the audiences perception of a brand as say, cool or with traditional values. Here, we offer a number of steps to follow to ensure your brand is instantly recognizable online in a consistent way and one that reflects its core values and aesthetics to the fullest.Be consistent through all social media platformsIn social media brand building, consistency is key. Try to use the social media channels that actually can help your brand and design a consistent logo, color palette, bio, and handle for all. Your content may vary from LinkedIn to Twitter according to each mediums special characteristics but the logo, colors and company details should match to avoid confusion. Nike is a good example of brand consistency: While their content varies from each social media channel, their colors, handle and bio are identical and recognizable at first glance.Deliver brand tone of voiceCreating a brand tone of voice is one most the most challenging facts and social media branding requires an approach similar to all advertising channels. The idea is to consider your social media accounts like parts of the same advertising tool kit; this way you will keep the tone of voice uniform across all platforms. Dont be afraid to be picky though; in a recent Forbes article, New York-based interior design firm Tilton Fenwick founders offer advice for choosing the right platforms. Not all social media platforms are created equal. Twitter is more of a conversation, best for sharing industry news or topics related to your brand. Facebook is similar to Twitter but with a much older audience. they note.Design a logo that expresses the brands core values, aesthetics and philosophyA logo is the first thing most social media users will note and connect with your brand so invest in one that expresses the brands core values and philosophy. Try to use a visual style guide and match the social profiles colors to those of your logoâ€"and again, keep this color palette across all platforms. Your logo and company colors should ideally express emotions and make a strong statement about your brand.Keep content relevant and up to dateSocial media is all about change and the content that you create must follow this rule. Make a list with content that drew the most response from your followers and then replicate it with similar up-to-date posts. Your brand identity is reflected in the content you post so make it relevant and as unique as possible. The key here is to choose your topic of expertise and become a leader in it; be it sneakers or travel experiences, your followers will love to know the latest in the field from you first.Invest in strong visualsSocial media is all about great images and the more you create visually oriented content, the more you will set your brand apart. Choose great images that work effectively with each social media channel and edit them to suit each channels requirements. Photo editing apps like Snapped can help you create a feed that looks highly professional and polished.Engage in conversationYou have created great company pages in most social media channels and produce great content dailyâ€"now its time to interact with your followers. Creating brand consistency has a lot to do with the online relationships you build with your followers, so try to engage in conversation, offer tips or create content to keep them coming back. The more human-oriented your brand feels, the more followersâ€"and thus, potential customersâ€"it can draw to your benefit.Post frequentlyCreating great content that reflects your brands values is a necessary step but you must be committed to posting it frequently. The frequency varies from each social media channel to another but twice a week is a very good starting point, especially for Instagram. Frequent posts create engagement and promote the very special characteristics or expertise of your brand online in a constant way. As Michael Noice, founder of Entrepreneur Coach, explains, A once-weekly Twitter post or monthly Instagram photo are not going to accomplish much, if anything. For this reason, its best to focus on two or three carefully chosen social networks and try to be active on them, rather than posting sporadically to a half-dozen.Connect with influencersConnecting with influencers is a great way to establish collaborations and get ambassadors that will promote brand awareness for a wide audience. You will need to create a strategy that involves developing relationships with the influencers of your choice and making them see you as an expert in your field. If they feel they can relate to your brand values and identity, they will be more eager to work with you, thus promoting your brand further. Start by specifying all the influencers in your industry and then follow them. Dont be afraid to engage with them by liking, commenting or even reposting their content with tagsâ€"this is a great way of making them notice you the first time. DMs should come lastâ€"be super careful with what you write and never force things.Dont be afraid to engage with influencers by liking, commenting or even reposting their content with tags. Photo by George Pagan III on Unsplash.Create a special hashtagAnother great idea to expressing your brand identity online is creating a unique hashtag for your brand. This way, you will become instantly rec ognizable and will encourage others to use that unique hashtag and involve your content. Sprout Social writer Jenn Chen uses the case of Serena and Lily as an example: their branded hash tag #serenaandlily is used in every post the brand puts on Instagram and even works as a community hashtag, adding up to over 14k tagged posts.Above allâ€"evolveCreating brand awareness on social media is a never-ending processâ€"your brand identity should evolve with time and take note of all current developments in the field. Update your content to keep your audience coming back for more and try to be super aware of new developments in social media. Changes are fast and sometimes happen overnight. Telling your brands story is a process that needs to be redefined often and new social media strategies applied along with the old ones. Instagram has made a few changes in 2019 that change the way content is posted, including experimenting with nothing less than Augmented Reality, as seen in this AdEspe sso by Hootsuite article. Make sure you are informed of all changes in social media and use them to your brands benefit.

Dbq Colonial New England and Chesapeake Regions - 891 Words

DBQ: Colonial New England and Chesapeake Regions The Chesapeake and New England regions were settled by people of English descent, but by 1700, they had become two distinctly different societies. They had evolved so differently, mainly because of the way that the settlers followed their religion, their way of conducting politics and demographics in the colonies. Even though the settlers came from the same homeland: England, each group had its own reasons for coming to the New World and different ideas planned for the colonies. On his way to the New World, aboard the Arabella in 1630, John Winthrop, Puritan leader of the Massachusetts Bay Colony, spoke of the plan that he had in store for the colony. He preached that there would be†¦show more content†¦In the Chesapeake region, the settlers came for entirely different reasons; they didnt come to form a community in the New World, they came looking for gold. Everything in VirginiaÂâ€"the colonist, the politics, and the societyÂâ€"was based on profit, unlike in the New Eng land region, it was an every-man-for-himself society instead of a brotherly community. In History of Virginia, Capitan John Smith wrote that the colonist main reason for coming to the New World was to Â… dig gold, wash gold, refine gold, load goldÂ… Another reason the Chesapeake region was so different from the New England region was because the basis of the settlement was to find gold and ship it back to Mother England, some of the colonist did not plan to stay in the New World either; they were only attracted by the economic benefits. In the Ship List of Emigrants Bound for Virginia, it is reported that the settlers that are coming into the New World are still in allegiance with the Anglican Church and the King. This shows that the colonists are not seeking religious freedom or striving to become a city upon a hill, but rather seeking economic opportunities. Another significant point that arises in the document is that the population of men is about six times that of women; not to mention that the women are listed separate from the men. TheShow MoreRelatedAp Exam Essays1660 Words   |  7 PagesAP Exam Essays 2001-2010 2010 AP Exam Essays 1. In what ways did ideas and values held by Puritans influence the political, economic, and social development of the New England colonies from 1630 through the 1660s? 2. Analyze the political, diplomatic, and military reasons for the United States victory in the Revolutionary War. Confine your answer to the period 1775–1783. 3. Analyze the ways in which controversy over the extension of slavery into western territories contributed to the comingRead MoreDbq Although New England and the Chesapeake Region Were Both Settled Largely by of English Origin, by 1700 the Region Had Evolved Into Two Different Societies. Why Did This Difference in Development Occur?1229 Words   |  5 PagesSeptember 24, 2012 DBQ ESSAY Question: Although New England and the Chesapeake region were both settled largely by of English origin, by 1700 the region had evolved into two different societies. Why did this difference in development occur? Thesis Statement: When talking about New England and the Chesapeake region, you have to consider the differences in motives and geography. Consider economic situations (reasons for settling where they did, reasons why they came to New England in the first place)Read MoreApush Dbqs Essay2248 Words   |  9 Pages2011 DBQ: (Form A) 1. Analyze the international and domestic challenges the United States faced between 1968 and 1974, and evaluate how President Richard Nixon’s administration responded to them. (Form B) 1. Explain the ways that participation in political campaigns and elections in the United States changed between 1815 and 1840, and analyze forces and events that led to these changes. 2010 DBQ: (Form A) 1. In what ways did ideas and values held by Puritans influence the politicalRead MoreBoyer Dbq Teacher Guide10764 Words   |  44 PagesUsing the DBQ Practice Questions from The Enduring Vision, Sixth Edition A Teachers’ Guide Ray Soderholm Minnetonka High School Minnetonka, Minnesota Using the DBQ Practice Questions from The Enduring Vision, 6th Edition A Teachers’ Guide This guide is intended to suggest some possible ways that students may organize essays related to the document-based questions in the Advanced Placement version of The Enduring Vision, 6th Edition, and to provide teachers with some information on each included

Kurt Vonneguts Opinions Expressed in Player Piano, Cats...

Kurt Vonnegut’s Opinions Expressed in Player Piano, Cat’s Cradle, and Slaughterhouse-Five Every so often, a person comes along and encompasses the meaning of a generation. This person will capture everything people want to say, and then word it so well that his or her name becomes legendary. The sixties was an era with many of these people, each with his or her own means of reaching the people. Kurt Vonnegut, Jr., armed with a typewriter and a motive, was amongst those that defined the sixties. Like other notable figures of the sixties, his strong opinions moved the people. Vonnegut’s opinions cover a wide range of topics and address almost all aspects of society. He represented the flower children of the sixties, as he†¦show more content†¦He attended Cornell University from1940 to 1942, and the Carnegie Institute of Technology in 1943. From 1942 to 1945, he served in the United States infantry in Europe during World War II (Ethridge 1-4: 970-971). According to Stanley Schalt’s book Kurt Vonnegut, Jr., Vonnegut was captured at the Battle of the Bulge and then sent to Dresden to work in a factory producing vitamin supplements for pregnant women (n. pag.). He was awarded the Purple Heart for his efforts. Vonnegut then came home, where he continued his college education by attending the University of Chicago from 1945 to 1947. He married Jane Cox in 1945 and eventually fathered three children, their names being Mark, Edith, and Nanette. After the war, he was a Chicago City News Bureau Police Reporter in 1947. Before he became a writer, he also worked with Public Relations for General Electric in Schenectady, New York from 1947 to 1950 (Ethridge 1-4: 970). In 1950, Vonnegut decided to become a writer, with his first novel, Player Piano, being published in 1951. He would later go on to write works such as Canary in a Cat House (1959), Mother Night (1961), Cat’s Cradle (1963), God Bless You, Mr. Rosewater (1965), Slaughterhouse-Five (1969), and Breakfast of Champions (1973). His most renowned work, Slaughterhouse-Five, is as close to an autobiography as he comes. In Slaughterhouse-Five, Vonnegut writes a novel based his experience as a prisoner of war

Microeconomics Chapter 21 Free Essays

Microeconomics Chapter 21 Free Essays Microeconomics Chapter 21: The theory of consumer choice After developing the basic theory of consumer choice, we apply it to three questions about households decisions 1)Do all demand curves slope downward? 2)How do wages affect labour supply? 3)How do interest rates affect households saving? The budget constraint: What the consumer can afford -People consume less than they desire because their spending is constrained or limited by their income Budget constraint: the limit on the consumption bundles that a consumer can afford -The slope of the budget constraint measures the rate at which the consumer can trade one good for the other Preferences: What the consumer wants -The budget constraint is one piece of the analysis: it shows what combination of goods the consumer can afford given his income and the prices of the goods -The consumers’ choice, however, depend not only on his budget constraint but also on his preferences regarding the two goods -The consumer’s preferences are the next piece of our analysis Representing Preferences with Indifference Curves Indifference curve: a curve that shows consumption bundles that give the consumer the same level of satisfaction -The slope at any point on an indifference curve equals the rate at which the consumer is willing to substitute one good for the other Marginal rate of substitution: the rate at which a consumer is willing to trade one good for another Because the indifference curve are not straight lines, the marginal rate of substitution is not the same at all points on a given indifference curve -The rate at which a consumer is willing to trade one good for the other depends on the amounts of the goods he is already consuming -The consumer is equally happy at all points on any given indifference curve, but he prefers some indifference curve to others -A consumer’s set of indifference curves gives a complete ranking of the consumer’s preferences -We can use the indifference curve to rank any two bundles of goods Four propert ies of Indifference curves Property 1: Higher indifference curves are preferred to lower ones. People usually prefer more of something to less of it. This preference of greater quantities is reflected in the indifference curves Property 2: Indifference curves are downward sloping. We will write a custom essay sample on Microeconomics Chapter 21 or any similar topic only for you Order Now The slope of an indifference curve reflects the rate at which the consumer is willing to substitute one good for the other, In most cases, the consumer like both goods. Therefore, if the quantity of one good is reduced, the quantity of the other good must increase in order for the consumer to be happy Property 3: Indifference curves do not cross. Contradicts our assumption that the consumer always prefers more of both goods to less. Thus, indifference curves cannot cross. (Refer to example) Property 4: Indifference curves are bowed inward. The slope of an indifference curve is marginal rate of substitution-the rate at which the consumer is willing to tradeoff one good for the other. The MRS usually depends on the amount of each good the consumer is currently consuming. People are more willing to trade away goods that they have in abundance and less willing to trade away goods of which they have little, the indifference curves are bowed inward Two Extreme Examples of Indifference Curves -The shape of an indifference curve tells us about the consumer’s willingness to trade one good for the other -When the goods are easy to sub. For each other, the indifference curve are less bowed; when the goods are hard to sub, the indifference curves are very bowed Perfect Substitute -Because the marginal rate of substitution is constant, the indifference curves are straight lines – In this extreme case of straight indifference curve, we say that they two goods are perfect subs. Perfect Complements The indifference curve, therefore are right angles -In this extreme case of right-angle indifference curves, we say that the two goods are perfect complements -Real world- most goods are neither perfect substitutes nor perfect complements but typically, the indifference curves are bowed inward, but not so bowed as to become right angles Optimization: What the consumer chooses -Two necessary pieces for this analysis: the consumerà ¢â‚¬â„¢s budget constraint and the consumer’s preferences- put it together and choose what the consumer should buy The consumer’s optimal choices The consumer must also end up on or below his budget constraint, which measures the total resources available to him -The highest indifference curve that the consumer can reac is the one that just barely touches the budget constraint -The point at which this indifference curve and the budget constraint touch is called the optimum -At the optimum, the slope of the indifference curve equals the slope of the budget constraint – the indifference curve is tangent to the budget constraint -the consumer chooses consumption of the two goods so that the marginal rate of substitution equals to the relative price – the consumer takes as given the relative price of the two goods and then chooses an optimum at which his marginal rate of substitution equals to the relative price -The relative price is the rate at which the ma rket is willing to trade one good for the other, whereas the marginal rate of substitution is the rate at which the consumer is willing to trade one good for the other How changes in Income Affect the consumer’s choices Normal good: a good for which, other things equal, an increase in income leads to an increase in demands Inferior good: A good for which, other things equal, an increase in income leads to a decrease in demand -Although most goods are normal goods, there are some inferior goods in the world How changes in prices affect the consumer’s choice A fall in the price of any good shifts the budget constraint outward Income and substitution effects Income effect: the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve Substitution effect: The change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution -T he income effect is the change in consumption that results from the movement to a higher indifference curve -The substitution effect is the change in consumption that results from being at a point on an indifference curve with a different marginal rate of substitution Deriving the Demand Curve The demand curve for any good reflects those consumption decisions -A demand curve shows the quantity demanded of a good for any given price -The theory of consumer choice provides the theoretical foundation for the consumer’s demand curve -The theory of consumer choice is, however, very useful in studying various decisions that people make as they go about their lives Three Applications Do All Demand Curves Slope Downward? -Demand curves can sometimes slope upward -Consumers can sometimes violate the law of demand and buy more of a good when the price rises Giffen good: A good for which an increase in the price raises the quantity demanded -Giffen goods are inferior goods for which the income effect dominates the substitution effect- therefore- the demand curve has a slope upwards How do wages affect labour supply? The substitution effect induces Sally to work harder in response to higher wages, which tends to make the labour supply curve slope upwards -The income effect induces her to work less, which tends to make the labour supply curve slope backwards -Economic theory does not give a clear prediction about whether an increase in the wage induces Sally to work more or less -If the sub. effect is greater than the income effect for Sally, she works more -If the income effect is greater than the substitution effect, she works less -The labour supply curve, therefore, could be either upward or backward sloping How do interest rates affect household saving? Substitution effect: when the interest rate rises, consumption when old becomes less costly relative to consumption when young-therefore- consume more wen old and less when young Income effect: when the interest rate rises, he moves to a higher indifference curve. As long as consumption in both periods consists of normal goods, he tends to want to use this increase in well-being to enjoy higher consumption in both periods- income effect induces him to save less -The theory of consumer choice says that an increase in the interest rate could either encourage or discourage savings Conclusion: Do people really think this way? -The theory of consumer choice does not try to present a literal account of how people make decisions -The theory of consumer choice tries to describe this implicit, psychological process in a way that permits explicit, economic analysis -Test of theory is in the application How to cite Microeconomics Chapter 21, Essay examples

Microeconomics Chapter 21 Free Essays

Microeconomics Chapter 21 Free Essays Microeconomics Chapter 21: The theory of consumer choice After developing the basic theory of consumer choice, we apply it to three questions about households decisions 1)Do all demand curves slope downward? 2)How do wages affect labour supply? 3)How do interest rates affect households saving? The budget constraint: What the consumer can afford -People consume less than they desire because their spending is constrained or limited by their income Budget constraint: the limit on the consumption bundles that a consumer can afford -The slope of the budget constraint measures the rate at which the consumer can trade one good for the other Preferences: What the consumer wants -The budget constraint is one piece of the analysis: it shows what combination of goods the consumer can afford given his income and the prices of the goods -The consumers’ choice, however, depend not only on his budget constraint but also on his preferences regarding the two goods -The consumer’s preferences are the next piece of our analysis Representing Preferences with Indifference Curves Indifference curve: a curve that shows consumption bundles that give the consumer the same level of satisfaction -The slope at any point on an indifference curve equals the rate at which the consumer is willing to substitute one good for the other Marginal rate of substitution: the rate at which a consumer is willing to trade one good for another Because the indifference curve are not straight lines, the marginal rate of substitution is not the same at all points on a given indifference curve -The rate at which a consumer is willing to trade one good for the other depends on the amounts of the goods he is already consuming -The consumer is equally happy at all points on any given indifference curve, but he prefers some indifference curve to others -A consumer’s set of indifference curves gives a complete ranking of the consumer’s preferences -We can use the indifference curve to rank any two bundles of goods Four propert ies of Indifference curves Property 1: Higher indifference curves are preferred to lower ones. People usually prefer more of something to less of it. This preference of greater quantities is reflected in the indifference curves Property 2: Indifference curves are downward sloping. We will write a custom essay sample on Microeconomics Chapter 21 or any similar topic only for you Order Now The slope of an indifference curve reflects the rate at which the consumer is willing to substitute one good for the other, In most cases, the consumer like both goods. Therefore, if the quantity of one good is reduced, the quantity of the other good must increase in order for the consumer to be happy Property 3: Indifference curves do not cross. Contradicts our assumption that the consumer always prefers more of both goods to less. Thus, indifference curves cannot cross. (Refer to example) Property 4: Indifference curves are bowed inward. The slope of an indifference curve is marginal rate of substitution-the rate at which the consumer is willing to tradeoff one good for the other. The MRS usually depends on the amount of each good the consumer is currently consuming. People are more willing to trade away goods that they have in abundance and less willing to trade away goods of which they have little, the indifference curves are bowed inward Two Extreme Examples of Indifference Curves -The shape of an indifference curve tells us about the consumer’s willingness to trade one good for the other -When the goods are easy to sub. For each other, the indifference curve are less bowed; when the goods are hard to sub, the indifference curves are very bowed Perfect Substitute -Because the marginal rate of substitution is constant, the indifference curves are straight lines – In this extreme case of straight indifference curve, we say that they two goods are perfect subs. Perfect Complements The indifference curve, therefore are right angles -In this extreme case of right-angle indifference curves, we say that the two goods are perfect complements -Real world- most goods are neither perfect substitutes nor perfect complements but typically, the indifference curves are bowed inward, but not so bowed as to become right angles Optimization: What the consumer chooses -Two necessary pieces for this analysis: the consumerà ¢â‚¬â„¢s budget constraint and the consumer’s preferences- put it together and choose what the consumer should buy The consumer’s optimal choices The consumer must also end up on or below his budget constraint, which measures the total resources available to him -The highest indifference curve that the consumer can reac is the one that just barely touches the budget constraint -The point at which this indifference curve and the budget constraint touch is called the optimum -At the optimum, the slope of the indifference curve equals the slope of the budget constraint – the indifference curve is tangent to the budget constraint -the consumer chooses consumption of the two goods so that the marginal rate of substitution equals to the relative price – the consumer takes as given the relative price of the two goods and then chooses an optimum at which his marginal rate of substitution equals to the relative price -The relative price is the rate at which the ma rket is willing to trade one good for the other, whereas the marginal rate of substitution is the rate at which the consumer is willing to trade one good for the other How changes in Income Affect the consumer’s choices Normal good: a good for which, other things equal, an increase in income leads to an increase in demands Inferior good: A good for which, other things equal, an increase in income leads to a decrease in demand -Although most goods are normal goods, there are some inferior goods in the world How changes in prices affect the consumer’s choice A fall in the price of any good shifts the budget constraint outward Income and substitution effects Income effect: the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve Substitution effect: The change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution -T he income effect is the change in consumption that results from the movement to a higher indifference curve -The substitution effect is the change in consumption that results from being at a point on an indifference curve with a different marginal rate of substitution Deriving the Demand Curve The demand curve for any good reflects those consumption decisions -A demand curve shows the quantity demanded of a good for any given price -The theory of consumer choice provides the theoretical foundation for the consumer’s demand curve -The theory of consumer choice is, however, very useful in studying various decisions that people make as they go about their lives Three Applications Do All Demand Curves Slope Downward? -Demand curves can sometimes slope upward -Consumers can sometimes violate the law of demand and buy more of a good when the price rises Giffen good: A good for which an increase in the price raises the quantity demanded -Giffen goods are inferior goods for which the income effect dominates the substitution effect- therefore- the demand curve has a slope upwards How do wages affect labour supply? The substitution effect induces Sally to work harder in response to higher wages, which tends to make the labour supply curve slope upwards -The income effect induces her to work less, which tends to make the labour supply curve slope backwards -Economic theory does not give a clear prediction about whether an increase in the wage induces Sally to work more or less -If the sub. effect is greater than the income effect for Sally, she works more -If the income effect is greater than the substitution effect, she works less -The labour supply curve, therefore, could be either upward or backward sloping How do interest rates affect household saving? Substitution effect: when the interest rate rises, consumption when old becomes less costly relative to consumption when young-therefore- consume more wen old and less when young Income effect: when the interest rate rises, he moves to a higher indifference curve. As long as consumption in both periods consists of normal goods, he tends to want to use this increase in well-being to enjoy higher consumption in both periods- income effect induces him to save less -The theory of consumer choice says that an increase in the interest rate could either encourage or discourage savings Conclusion: Do people really think this way? -The theory of consumer choice does not try to present a literal account of how people make decisions -The theory of consumer choice tries to describe this implicit, psychological process in a way that permits explicit, economic analysis -Test of theory is in the application How to cite Microeconomics Chapter 21, Essay examples