Teori Pilihan Konsumen

TEORI PILIHAN KONSUMEN
The Theory of Consumer Choice
Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

THE BUDGET CONSTRAINT: WHAT
THE CONSUMER CAN AFFORD
• The budget constraint depicts the limit on

the consumption “bundles” that a
consumer can afford.
– People consume less than they desire
because their spending is constrained,
or limited, by their income.

• The budget constraint shows the various

combinations of goods the consumer can
afford given his or her income and the
prices of the two goods.

The Consumer’s Budget Constraint

• The Consumer’s Budget Constraint

– Any point on the budget constraint line
indicates the consumer’s combination
or tradeoff between two goods.
– For example, if the consumer buys no
pizzas, he can afford 500 pints of Pepsi
(point B). If he buys no Pepsi, he can
afford 100 pizzas (point A).

Figure 1. The Consumer’s Budget Constraint
Quantity
of Pepsi
B
500
Consumer’s
budget constraint
A
0 100 Quantity
of Pizza
• The Consumer’s Budget Constraint

– Alternately, the consumer can buy 50
pizzas and 250 pints of Pepsi.

Figure 1. The Consumer’s Budget Constraint
Quantity
of Pepsi
B
500
C
250
Consumer’s
budget constraint
A
0 50 100 Quantity
of Pizza
• The slope of the budget constraint line

equals the relative price of the two goods,
that is, the price of one good compared to
the price of the other.
• It measures the rate at which the consumer
can trade one good for the other.

PREFERENCES: WHAT
THE CONSUMER WANTS
• A consumer’s preference among

consumption bundles may be illustrated
with indifference curves.

Representing Preferences
with Indifference Curves
• An indifference curve is a curve that shows

consumption bundles that give the consumer
the same level of satisfaction.

Figure 2. The Consumer’s Preferences
Quantity
of Pepsi
C
B D
I2
Indifference
A
curve, I1
0 Quantity
of Pizza
Representing Preferences
with Indifference Curves
• The Consumer’s Preferences

– The consumer is indifferent, or equally happy,
with the combinations shown at points A, B,
and C because they are all on the same curve.
• The Marginal Rate of Substitution
– The slope at any point on an indifference curve
is the marginal rate of substitution.
• It is the rate at which a consumer is willing to trade
one good for another.
• It is the amount of one good that a consumer
requires as compensation to give up one unit
of the other good.

Quantity
of Pepsi
C
B D
MRS I2
1
Indifference
A
curve, I1
0 Quantity
of Pizza
Four Properties of Indifference Curves
• Higher indifference curves are preferred

to lower ones.
• Indifference curves are downward sloping.
• Indifference curves do not cross.
• Indifference curves are bowed inward.

• Property 1: Higher indifference curves are

preferred to lower ones.
– Consumers usually prefer more

of something to less of it.
– Higher indifference curves represent
larger quantities of goods than do lower
indifference curves.

Quantity
of Pepsi
C
B D
I2
Indifference
A
curve, I1
0 Quantity
of Pizza
• Property 2: Indifference curves are

downward sloping.
– A consumer is willing to give up one

good only if he or she gets more of the
other good in order to remain equally
happy.
– If the quantity of one good is reduced,
the quantity of the other good must
increase.
– For this reason, most indifference curves
slope downward.
Quantity
of Pepsi
Indifference
curve, I1
0 Quantity
of Pizza
• Property 3: Indifference curves do not

cross.
– Points A and B should make the consumer

equally happy.
– Points B and C should make the consumer
equally happy.
– This implies that A and C would make
the consumer equally happy.
– But C has more of both goods compared
to A.
Figure 3. The Impossibility of Intersecting Indifference Curves
Quantity
of Pepsi
0 Quantity
of Pizza
• Property 4: Indifference curves are bowed

inward.
– 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.
– These differences in a consumer’s
marginal substitution rates cause his or
her indifference curve to bow inward.

Figure 4. Bowed Indifference Curves
Quantity
of Pepsi
14
MRS = 6
A
8
1
4 B
MRS = 1
3
1
Indifference
curve
0 2 3 6 7 Quantity
of Pizza
OPTIMIZATION: WHAT
THE CONSUMER CHOOSES
• Consumers want to get the combination

of goods on the highest possible
indifference curve.
• However, the consumer must also end up

on or below his budget constraint.

The Consumer’s Optimal Choices
• Combining the indifference curve and

the budget constraint determines
the consumer’s optimal choice.
• Consumer optimum occurs at the point

where the highest indifference curve
and the budget constraint are tangent.

The Consumer’s Optimal Choice
• The consumer chooses consumption

of the two goods so that the marginal rate
of substitution equals the relative price.
• At the consumer’s optimum, the consumer’s

valuation of the two goods equals
the market’s valuation.

Figure 5. The Consumer’s Optimum
Quantity
of Pepsi
Optimum
B
A
I3
I2
I1
Budget constraint
0 Quantity
of Pizza

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TEORI PILIHAN KONSUMEN

The Theory of Consumer Choice

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• The budget constraint depicts the limit on

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• The budget constraint shows the various

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• The Consumer’s Budget Constraint

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• The Consumer’s Budget Constraint

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• The slope of the budget constraint line

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• A consumer’s preference among

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• An indifference curve is a curve that shows

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• The Consumer’s Preferences

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• Higher indifference curves are preferred

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• Property 1: Higher indifference curves are

– Consumers usually prefer more

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• Property 2: Indifference curves are

– A consumer is willing to give up one

• Property 3: Indifference curves do not

– Points A and B should make the consumer

• Property 4: Indifference curves are bowed

– People are more willing to trade away

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• Consumers want to get the combination

• However, the consumer must also end up

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• Combining the indifference curve and

• Consumer optimum occurs at the point

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

• The consumer chooses consumption

• At the consumer’s optimum, the consumer’s

Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition

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