Theoretical Tools - Constrained Utility Maximization Putting It Together.pptx

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Constrained Utility Maximization: Putting It TogetherTheoretical Tools
ObjectiveBe able to identify a consumer’s optimal consumptionbundle by putting budget and preferences together
Constrained Utility MaximizationHow does aconsumer choosewhat to consume?
Optimal Consumption BundleAt the optimalconsumption bundle, theslope of the budgetconstraint equals theslope of the indifferencecurve.This means
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Term
Spring
Professor
Tapley

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