Slide 1Consumer Demand Theory II Session 3, EA 4 th July, 2007 Prof. Samar K. Datta Slide 2 Overview of items intended to be covered in this session Consumer Choice –Interpretation…

Slide 11 Introductory Microeconomics Indifference Curves Slide 2 2 Example: To encourage education, a government is considering three different options: A lump-sum cash to…

1. 1 Indifference Curves 2. 2 Example:  To encourage education, a government is considering three different options: A lump-sum cash to kids of school age. A matching…

Slide 1 Budget Constraint –Budget constraints limit an individual’s ability to consume in light of the prices they must pay for various goods and services. The budget…

Slide 1 1 Stephen Chiu University of Hong Kong Utility Theory Slide 2 2 The cardinal approach The ordinal approach Consumer choice problem Intertemporal choice problem Slide…