136 Outcome: How Utility Changes

What you’ll learn to do: explain how consumer’s utility changes when income or prices change

Imagine you were to create a pie chart of your college budget and spending. Where does most of your money go? Is it spent on housing? Tuition? Maybe on a car payment or food? How much money goes towards savings, entertainment, or a night out with friends? In this outcome, you’ll see how economists interpret these consumer choices and learn how to analyze utility considering a person’s budget constraints.

LEARNING ACTIVITIES

The learning activities for this section include:

  • Reading: The Foundations of Demand Curve
  • Reading: Income Changes and Consumption Choices
  • Self Check: Consumption Choices

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.

License

Icon for the Creative Commons Attribution 4.0 International License

Microeconomics by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

Share This Book