Microeconomics: Consumer's Choice
B. The Theory of Choice. This is the basic theory of how a consumer decides which
commodity bundle to buy, given prices, income, and the consumer's preferences
over commodities.
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actually subscripts. At 5:21, I use the term "indifference curve" without telling you what
an "indifference curve" is: an "indifference curve" is "a contour line of the utility function."
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C. Changes in Income and Prices. This shows how the decisions described in
Topic B change when a consumer's income changes or when the prices which
the consumer has to pay change. One result is how to draw demand curves.
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page-long PDF file here. (Ignore the fact that its pages have blank spaces in odd places.)
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D. Market Demand and Elasticity. Adding the demand curve of different individuals to
obtain the market demand curve; and different ways of describing how sensitive
demand curves are to changes in income and in prices.
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