Outcome: How Utility Changes

What you’ll learn to do:¬†explain how consumer’s utility changes when income or prices change

Imagine you were to create a pie chart of your college budget and spending. Where does most of your money go? Is it spent on housing? Tuition? Maybe on a car payment or food? How much money goes towards savings, entertainment, or a night out with friends? In this outcome, you’ll see how economists interpret these consumer choices and learn how to analyze utility considering a person’s budget constraints.

LEARNING ACTIVITIES

The learning activities for this section include:

  • Reading: The Foundations of Demand Curve
  • Reading: Income Changes and Consumption Choices
  • Self Check: Consumption Choices

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.