2 The general Consumer Problem

In this video, the tutor delves into consumer theory in microeconomics. They introduce the concept of demand determination, focusing on a two-good problem (X and Y). Key aspects include plotting the budget constraint, recognizing its slope as price ratios, and understanding trade-offs between X and Y. The consumer's problem is then discussed: maximizing utility given infinite points on the budget constraint. Indifference curves are introduced to represent utility level sets, with various shapes explored (linear, smooth, L-shaped, perfect complements). The video concludes by highlighting key topics for future videos. Subscribe to @AxiomTutoringCourses for more.