Microeconomics
What does the tangency condition between the budget constraint and an indifference curve signify?
What happens to the budget constraint and optimum consumption when a consumer's income decreases?
What is a limitation of a consumer's budget in achieving higher levels of utility?
What role do indifference curves play in determining consumer optimum consumption?
What is the consumer's optimum consumption point?
If the price of good H increases, how does this affect the consumer's budget constraint and optimum consumption?
If a consumer's income decreases from \$80 to \$60, and the prices of goods E and F are \$8 and \$10 respectively, what is the new optimum consumption point assuming the initial optimum was 5 units of E and 4 units of F?
How would you graphically determine the effect of a price decrease in good G on the consumer's budget constraint and optimum consumption?
What does the point of tangency between the budget constraint and an indifference curve represent?
A consumer's income increases from \$40 to \$60, and the prices of goods A and B are \$4 and \$5 respectively. If the initial optimum consumption was 5 units of A and 4 units of B, what is the new optimum consumption point assuming the consumer's preferences remain unchanged?
