Core-006 Consumer Choice
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About Core-006 Consumer Choice
About the Teacher
Jay Moulton
Jay Moulton is a business veteran. In short:
- Corporate finance and turnaround expert in U.S. and Canada
- CEO or operator of numerous companies in many industries
- 30 years of actually applying business economics principles
- Successfully led and invested in several leveraged buyouts
- Director or advisor to 30+ different companies
- Experience in both for-profit and not-for-profit sectors
- Producer of 700 professional videos and several TV shows
- Author of six economics and business strategy books
- Graduate of Harvard Business School MBA program
- Graduate of The Royal Military College of Canada
- Professional electrical engineer
- Governor of the Harvard Club of British Columbia
Consumer Choice
MODULE 1
Buyers consume less than they desire because spending is constrained. An indifference curve shows consumption bundles that give the consumer the same level of satisfaction. A consumer will choose the point on the budget constraint that lies on the highest indifference curve.
Indifference Curves
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The tradeoff that a consumer makes between peanut butter cups and chocolates is used, as an example, to build indifference curves.
Indifference curves show the tradeoffs that a consumer is willing to make between two goods in order to maintain a constant level of happiness.
We use the examples of peanut butter cups and chocolates to plot an indifference curve.
Maximizing Utility with a Budget
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Producer Surplus Consumer Surplus
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