What can be obtained from the simple chart?
Marginal values
Total Expenditures
Total Value
Buyers Net Gains which counts as the consumer surplus.
Why do we have to behave this way?
Wealth Effects
Substitution Availability
Diminishing Marginal Utility
When burritos are zero, they would be used for other ideas. You would get less of a trade off if you play baseball with a burrito.
Better to the environment to feed it to your dogs
Markets force you to consider the values of everyone else. Demand curves never go up, they act as peaks at a slope downward. Price comes at some determination and behavior of the curve.
Wealth Effects, as price goes up, you become poorer.
Less income on anything else. Increasing everything will be worst for the poor since they have no money.
Substitution Availability is buying coal or oil is bad since they increase prices. Now they will increase in your incentives for that. The prices for traffic cops since they take an advantage on our choices.
Diminishing marginal Utility
Each unit that you purchase will give you less satisfaction. I wouldn't be paying enough to get the 5th slice of pizza. You would have to go out of your way to get that type of luxury that is unneeded.
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