Class 27: the Demand Curve

Today, Mr Rizzo talks about Burrito and his wife Rachel's demand for the burrito to the price of the burrito. He explains on what are the things that we can observe and analyze based on the demand curve, and some of the points from the curve that can explain why we behave in certain ways. The things that we can see are marginal values, total expenditure, total values and buyers' surplus. The reason why we behave in certain ways are because of wealth effects, substitution availability and diminishing marginal utility.