Thursday, February 26, 2015

Utility Maximization

In class students were introduced to the Consumption Possibilities Curve (Budget Line) and talked about utility maximization.  Utility is maximized when the marginal utility per dollar of each good are equal.

The notes are attached below as is the homework.

Notes - Utility Maximization

HW - Quiz - Behind the Demand Curve
          Read modules 52 and 53


***Answer Key - Surplus and Tax Incidence

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