Unformatted text preview: Figure 9.2 Marginal utility N0 Budget Constraint: The limited amount of income available to consumers to spend on goods
and services. Example: Suppose you have $10 to spend on Pizza and Coke. Price of Pizza is $2 and Coke is
$1. How many slices of pizza and how many cups of Coke do you buy if you want to maximize your utility?
Total utility Marginal
from Coke utility ——
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- Spring '11