Econ 2106 certification - Study guides, Class notes & Summaries

When economists assume that you can rank any two options according to the utility they provide, they are saying that your preferences arecomplete The slope of the budget line is given by:-Px/Py Consumers allocate their scarce resources bymaximizing their total utility subject to one or more budget constraints The marginal rate of substitution tells usthe amount of one good we would be willing to give up in exchange for one additional unit of another good What causes the demand for a no...

When economists assume that you can rank any two options according to the utility they provide, they are saying that your preferences arecomplete The slope of the budget line is given by:-Px/Py Consumers allocate their scarce resources bymaximizing their total utility subject to one or more budget constraints The marginal rate of substitution tells usthe amount of one good we would be willing to give up in exchange for one additional unit of another good What causes the demand for a no...