Webexplain opportunity sets and opportunity costs.

Evaluate the law of diminishing marginal utility.

Explain how marginal analysis and utility.

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Webwe could be maximizing utility subject to four budget constraints, or we could be minimizing cost subject to four utility constraints.

Explain how marginal analysis and utility influence choices.

Explain opportunity sets and opportunity costs.

Webcalculate and graph budgets constraints.

That is, what quantities of goods will you consume, how many hours will you work, or how much.

Webtoday, we're going to continue our discussion of consumer choice.

Webin economics, a budget constraint refers to all possible combinations of goods that someone can afford, given the prices of goods and the income (or time) we have to.

Evaluate the law of diminishing marginal utility.

Evaluate the law of diminishing marginal utility.

Explain how marginal analysis and utility influence choices.

The first is the fact that the budget constraint is a.

Webexplain opportunity sets and opportunity costs.

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See handout 3 for relevant graphs for this lecture.

Webthis lecture continues the discussion about consumer choice and what happens when budget constraints are introduced.

Webthere are two major differences between a budget constraint and a production possibilities frontier.

Webin the budget constraint framework, all decisions involve what will happen next:

To talk now about what happens when we take that unconstrained choice we.

Either way, the solution lies at the.