Advance Organizer - Final Demand (6 minute read)


What is an Advance Organizer?

An Advance Organizer is a graphic with blank spaces that you fill in as you progress through the material in a course topic.  After completing a topic, your organizer will contain the key concepts that you have learned. They will be organized as a graphic that depicts the relationships among the concepts.

Advance Organizer for Private Household Demand

The Advance Organizer for private household demand shows how consumer demand is depicted in the UNI-CGE model.  As you move through the Final Demand topic, note these concepts in your organizer:

Utility Function - What type is used to describe consumer demand in the UI-CGE model? Leontief?  Cobb-Douglas? LES? Constant Difference Elasticities (CDE)?

Budget shares - Are they fixed at the initial shares in spending?

Homotheticity - Is the demand function you have chosen homothetic?

Stages of Demand - Do consumers separate the decision on what commodities to buy, and whether to choose a domestic or imported variety of that commodity? 

Elasticities - What are the elasticity parameters that are used in each stage of the consumer decision?

 Figure 1.  Advance Organizer for Private Household Demand

An advance organizer that describes the how consumer demand is presented in CGE model.

You can download the Advance Organizer for private consumer demand by clicking HERE

Last modified: Monday, 15 April 2024, 8:42 PM