Reading 14: Consumer Demand Flashcards Preview

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Flashcards in Reading 14: Consumer Demand Deck (4)
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1
Q

Utility Function

Consumer Demand

14.1

A
2
Q

Example of Utility Function

Consumer Demand

14.2

A

Wine and Bread:

3
Q

Budget Constraint

(basic form)

Consumer Demand

14.4

A

Wine and Bread:

If this is a strict equality, all income (I) will be spent.

If it were just an income constraint, less than or equal to I could be spent.

4
Q

Budget Constraint in Slope Intercept

Consumer Demand

14.4

A

Wine and Bread: