The first is the fact that the budget constraint is a.

That is, what quantities of goods will you consume, how many hours will you work, or how much.

Either way, the solution lies at the.

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Explain how marginal analysis and utility influence choices.

Webtoday, we're going to continue our discussion of consumer choice.

Webin the budget constraint framework, all decisions involve what will happen next:

See handout 3 for relevant graphs for this lecture.

Webthis lecture continues the discussion about consumer choice and what happens when budget constraints are introduced.

Webexplain opportunity sets and opportunity costs.

Explain opportunity sets and opportunity costs.

Evaluate the law of diminishing marginal utility.

Webcalculate and graph budgets constraints.

Evaluate the law of diminishing marginal utility.

Explain how marginal analysis and utility.

Evaluate the law of diminishing marginal utility.

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To talk now about what happens when we take that unconstrained choice we.

Webthere are two major differences between a budget constraint and a production possibilities frontier.

Explain how marginal analysis and utility influence choices.

Webexplain opportunity sets and opportunity costs.

Webwe could be maximizing utility subject to four budget constraints, or we could be minimizing cost subject to four utility constraints.

Webin economics, a budget constraint refers to all possible combinations of goods that someone can afford, given the prices of goods and the income (or time) we have to.