Monday, August 16, 2010

Indifference Curves and Choice

Some reasons are given form allowing fractions on a unit of consumption. Then this video does the traditional textbook approach. Perhaps there needs to be more development on indifference curves, but past experience suggests that laboring through the various properties of Preferences (Complete, Irreflexive, Transitive) doesn't go over well. So this is a more immediate approach based on the assumption that each bundle can get assigned a satisfaction index number.