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EC311 · Intermediate Microeconomics

EC311 / TOPIC 02

2.1 Preferences, utility and MRS

One idea at a time · explore as you learn1 / 11

How can utility numbers change while preference rankings stay the same?

More coffee may be welcome while more noise is unpleasant. Both can be objects of choice.

EC311 / GRAPHTry changing a value

1 Predict → 2 Try → 3 Explain → 4 Challenge

What does moving along an indifference curve mean?

Illustrative model numbers, not Thailand or current economic data.

Increase X on the same U=16 curve. What happens to Y?