ECO204Y5 Lecture Notes - Lecture 1: Budget Constraint, Indifference Curve
Document Summary
Tophat questions usually cover material from the previous lecture {used for marks} Tophat questions asked during the lecture {used for participation marks} You can"t go to the other lecture section because it will mess with the tophat marks. Practice tests; gives some test questions before hand. 4 basic about consumer preferences: completeness, we can rank or compare all possible baskets/bundles of goods , ex: if 2 bundles (a,b) then there"ll be 3 possible rankings. A is preferred to b : ua > ub. B is preferred to a : ua < ub. Indifference between a and b : ua = ub. Conclusion is a must be preferred to c. Indifference curves (ic: represents all combinations of market baskets that provide a consumer with the same level of satisfactions , each point on an ic represents different combinations of goods that provide the same level of utility.
