Theory Of Individual Behaviour Flashcards
1
Q
An individual who purchases goods and services from firms for consumption
A
Consumer
2
Q
This represents the possible goods and services a consumer can afford to consume
A
Consuemr opportunity
3
Q
This determines which goods will be consumed
A
Consumer preference
4
Q
What are the properties of indifference curve
A
- Completeness
- More is better (non-satiability)
- Diminishing marginal rate (Convexity)
- Transivity
