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August 28, 2007

Theory of the Consumer

Indifference curves are a relief map of a utility function.

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The budget constraint shows the set of possible consumption bundles.

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Changing the price of one of the goods constructs a demand curve for that good.

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Understanding income and substitution effects is a goal of ours.

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Posted by bparke at August 28, 2007 11:39 PM

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