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  So the demand curve, in this case is represented by the equation Q equals 1,800 minus 400p. Now you're immediately saying well, where's the 1,800, 400 come from?  It doesn't matter right now. That's what I'm going to teach you in the next few lectures. Right now that's an equation that represents a line. And the critical aspect of that equation is that there's a negative relationship between price and quantity. As price goes up, consumers want fewer roses. Why is that? Well, it's just because of opportunity cost. The more expensive is a rose, the more youhave to give up to buy it. So it's opportunity cost is higher, so you want it less. So the higher is the price, the fewer roses you want. So we get a downward sloping demand curve. The blue line. Now the supply curve represents the same relationship between price and quantity but from the supplier's perspective. A supply curve in this case that we've drawn here has the equation q equals 200...

  AUDIENCE: What if you have just three indifference curves so there is none that hit the tangent? Do you just go for one that's like the most tangent I guess?  JONATHAN GRUBER: We could have lines, and the lines could end up - you could end up lying along a budget constraint. Or you could even have utility functions, which just touch a budget constraint at one extreme or another. And we'll talk about those cases.   Yeah? Mahasiswa: So utility function go through lines and the budget constraint, right?  Jonathan Gruber: Yeah Mahasiswa: Isn't this just Lagrange ?? Jonathan Gruber: Well, let's come to the math then. OK, let's come to the mathematical derivation. So that's the graphic. So let's come to the math.  Now, always a bit of a tightrope act when I'm doing math up here on the board, so bear with me.  OK? But the key thing is the math of constraint optimization is all about the marginal decision. Remember, it's hard to say how many cookies y...

  Adding options to people's lives can't help but increase the expectations people have about how good those options will be. And what that's going to produce is less satisfaction with results, even when they're good results.  It all looks so great. I can't wait to be disappointed Nobody in the world of marketing knows this. Because if they did, you wouldn't all know what this was about. The truth is more like this.  Everything was better back when everything was worse The reason that everything was better back when everything was worse is that when everything was worse, it was actually possible for people  to have experiences that were a pleasant surprise.  Nowadays, the world we live in -- we affluent, industrialized citizens, with perfection the expectation -- the best you can ever hope for  is that stuff is as good as you expect it to be. You will never be pleasantly surprised, because your expectations, my expectations, have gone through the roof...

  I'm the oldest of three kids in my family. We're the first generation in our family to go to college. I did well in high school. I did things like Mock Trial. I successfully fought and overturned a book ban at my high school. Things like this made me think, "Oh, maybe law - maybe being an advocate would be fun."  I came to Grinnell; I did well here. I went to a law school; I did well there. Passed the Bar, got the type of job I wanted, and I was being an actual lawyer. But to use another metaphor, I kind of realized that morning, having that (full-blawn) panic attack, that I was sort of like Wile E. Coyote chasing the Road Runner. And I was going so fast from goal to goal and step to step. At the time, I'd started doing what I wanted to do, and it was the end goal all the time. I was a mile off the edge of the cliff and just falling all the way straight down.  Now, thankfully, that situation - I used it as a wake-up call. I started things like therapy and...

  When a man named Tycho Brahe got an idea, this idea, that to look at the thing, to record  the details and to hope  that in the information thus obtained may lie a clue to one or another of a possible theoritical interpretation.  This is the key of modern  science and is the beginning  of the true understanding of nature.  So Tycho who was a rich man, and owned,  I believe an island near copenhagen.   Outfitted his island with great  brass circle and special  observing positions   (situation chair that you could  look through a little hole)  and recorded night  after night the position of the planets.  It's only through such hard work that we can find out anything.  When all these data were collected, they came into the hands of Kepler who then tried to analyze what kinds of motions the  planets made around the sun.  And he did this by a method of trial and error. ...

  That's why you see some of the ads they're quite creative. And even if you don't like the ad it's okay even if the ad is annoying if it gets your attention If it creates some stopping power for you to say "what's going on here." and it's able to communicate the key feur and benefits of the product or create  interest so you develop um a need to know more about the product or  service  and ideally make you want the product right  Create a desire for the product even though if we've done  our marketing research properly  we've already identified  the unmet need  so now we're just making people aware  of the product or service we're just making them aware of the solution it shouldn't be a tough sell for us to get people to buy the product since we've already done the research and we know what their problems are but still we want to um instill in them this desire for the product and ultimately get them to take action which means a...

  Third : Escalation of expectations.  This hit me when I went to replace my jeans.  I wear jeans almost all the time.  There was a time when jeans came in one flavor,  and you bought them, and they fit like crap. And  They were incredibly uncomfortable,  and if you wore them long enough and washed them enough times,  they started to fit, feel OK.  I went to replace my jeans after years of wearing these old ones.  I said, " I want a pair of jeans. Here's my size ."  And the shopkeeper said,  "Do you want slim fit, easy fit, relaxed fit?  You want button fly or zipper fly? You want stonewashed or acid-washed?  Do you want them distressed?  Do you want boot cut, tapered?" Blah, blah, blah and on he went.  My jaw dropped.  And after I recovered,  I said,  " I want the kind that used to be the only kind ."  He had no idea what that was.  So I spent an hour trying on all these damn jeans ...