The theory of consumer choice examines the tradeoffs inherent in decisions made by consumers. For instance, if the relative price of a concert ticket is 3 times the price of a meal at a good restaurant, then the opportunity cost of a concert ticket can be measured by the slope of the budget constraint marginal rate of substitution income effect slope of an indifference curve

The theory of consumer choice examines the tradeoffs inherent in decisions made by consumers. For instance, if the relative price of a concert ticket is 3 times the price of a meal at a good restaurant, then the opportunity cost of a concert ticket can be measured by the slope of the budget constraint marginal rate of substitution income effect slope of an indifference curve

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 5SQP

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