David and Jane Dunn Have Been One of Your Valued

question 6

Essay

David and Jane Dunn have been one of your valued clients for over 10 years. Unfortunately, they are going through a divorce and are in the process of valuing their property themselves. They have asked you if this is a good idea. How would you advise them?

---

Definitions:

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford to purchase at given prices within their income level.

Utility

In economics, utility refers to the total satisfaction received from consuming a good or service.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning the consumer has no preference for one bundle over another.

Consumer Equilibrium

A state where an individual optimizes their utility or satisfaction from the consumption of goods and services given their income and prices.