단원 3: Theory of consumer choice

This unit builds our understanding of the basic postulates underlying consumer choice: utility, the law of diminishing marginal utility and utility-maximizing conditions, and their application in consumer decision-making and in explaining the law of demand. By examining the demand side of the product market, we learn how incomes, prices, and tastes affect consumer purchases. Here it is important that we understand how to derive an individual’s demand curve, how individual and market demand curves are related, and how the income and substitution effects explain the shape of the demand curve