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Preface

Published online by Cambridge University Press:  11 September 2009

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Summary

The origins of this work can be traced back to the spring of 1964, when I was a teaching assistant at the University of California at Berkeley. I was giving a class on the topic of consumer demand to a group of students taking an introductory economics course. In the process of my presentation I attempted to show the link between the demand function and consumer satisfaction by resorting to the use of a consumer surplus diagram. I had thought this to be a useful pedagogic device, particularly in that it enabled, I believed, the student to better understand marginal analysis. It was easy to show that the consumer would increase consumption up to the point where marginal utility in terms of the surplus just equaled price. The loss of satisfaction due to a price rise could then be illustrated in a straightforward manner. However, simplicity has a cost, as I was soon to learn. Near the end of the discussion, one student inquired as to how the consumer surplus analysis could be utilized if more than one price was varied. If two commodities were involved, then the demand curve for each would shift according to the degree of complementarity or substitutability. My answer consisted of two parts. First, I argued that my analysis was purely partial and was presented as a pedagogic device.

Type
Chapter
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Measuring Economic Welfare
New Methods
, pp. ix - xii
Publisher: Cambridge University Press
Print publication year: 1983

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  • Preface
  • George W. McKenzie
  • Book: Measuring Economic Welfare
  • Online publication: 11 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511571770.001
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  • Preface
  • George W. McKenzie
  • Book: Measuring Economic Welfare
  • Online publication: 11 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511571770.001
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Preface
  • George W. McKenzie
  • Book: Measuring Economic Welfare
  • Online publication: 11 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511571770.001
Available formats
×