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Comprehend the theory of indifference curves, budget constraints, and optimization in consumption choices.
Evaluate the effects of government policies on consumer choices and welfare.
Learn how perfect substitutes and complements affect consumer equilibrium.
Understand marginal utility and its role in consumer choice.

Definitions:

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Bounded Rationality

A concept that decision-makers are limited by the information they have, cognitive limitations, and finite time to make decisions.

Bounded Rationality

The concept that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Political Acceptability

The degree to which a policy, action, or decision is considered acceptable by political entities and the general public.

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