lecture5 - consumer choice - Topic 4 Consumer Choice(1...

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Topic 4: Consumer Choice (1) Preferences and constraints on choice USC Marshall
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Consumer choice To describe consumer behavior, we need two components – What the consumer would like to do • Description of preferences and the concept of utility – What the consumer can do • The concept of a budget constraint Together, these components allow us to discuss h ill h d th t how a consumer will choose and then move to analyzing demand and welfare USC Marshall
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