Reading 14 demand and supply analyisis: consumer demand
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This reading is organized as follows:
Section 2 describes consumer choice theory in more detail.
Section 3 introduces utility theory, a building block of consumer choice theory that provides a quantitative model for a consumer’s preferences and tastes.
Section 4 surveys budget constraints and opportunity sets.
Section 5 covers the determination of the consumer’s bundle of goods and how that may change in response to changes in income and prices.
Section 6 examines substitution and income effects for different types of goods.