(5) Details of the Consumer Choice Model and Its Connection to Demand
Consumer Choice, Maximizing Utility, Maximizing Behavior, Utility and Demand
This develops the model of consumer choice and maximizing behavior. Both the individual good decision and the multiple good decision framework are developed and explained. All of this is linked back to the responses discussed when demand functions/curves were introduced.
Crane, Steven E., "(5) Details of the Consumer Choice Model and Its Connection to Demand" (2011). Principles of Microeconomics. Paper 27.
Ability to explain the behavior of a maximizing consumer considering the consumption of a single good or multiple goods. Ability to indentify and explain the respective maximizing decision rules. Ability to relate the consumer behavior in these models to movements along and shifts in demand curves.
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