微观经济学教学课件：Ch08-Possibilities, Preferences, and Choices.pptVIP

After studying this chapter you will be able to Describe a household’s budget line and show how it changes when prices or income change Make a map of preferences by using indifference curves and explain the principle of diminishing marginal rate of substitution Predict the effects of changes in prices and incomeon consumption choices Predict the effects of changes in wage rates on work-leisure choices Subterranean Movements Like the continents floating on the earth’s mantle, spending patterns change slowly over time, but as they change, business empires rise and fall. The model of consumer c