#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis
The candidate should be able to:
describe consumer choice theory and utility theory;
describe the use of indifference curves, opportunity sets, and budget constraints in decision making;
calculate and interpret a budget constraint;
determine a consumer’s equilibrium bundle of goods based on utility analysis;
compare substitution and income effects;
distinguish between normal goods and inferior goods and explain Giffen goods and Veblen goods in this context.