Review of the previous lecture A consumer’s budget constraint shows the possible combinations of different goods he can buy given his income and the prices.
Chapter Four
POSSIBILITIES, PREFERENCES, AND CHOICES
POSSIBILITIES, PREFERENCES, AND CHOICES 8 CHAPTER.
Chapter 9 A Two-Period Model: The Consumption -Savings Decision and Credit Markets Copyright © 2014 Pearson Education, Inc.
EC2101 2014_2015 Midterm Solutions
Utility. Utility Functions u Utility is a concept used by economists to describe consumer preferences. u Utility function is a function that assigns a.
Objectives: Define an indifference curve and understand the significance of the slope of an indifference curve. Define a budget constraint, understand.
