Introduction to Changes in Consumer Equilibrium

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

Woman handing money to a bar tender.

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 section, you’ll see how consumer choices change when one’s budget changes or the prices of the things one buys changes.