1.3 — Budget Constraint — Readings

Recommended

• Ch. 4.3 in Austan Goolsbee, Steven Levitt, and Chad SyversonMicroeconomics, 2nd ed. (USA: Worth Publishers, 2012).
  
  

Now that we are picking up the intensity and working with some models (many will be new to you at first), I recommend looking at the textbook readings for each class.

We are going a bit out of order in two ways. First, Goolsbee et. al start with a review of Supply and Demand in chapters 2-3, and don’t get to “Consumer Theory” (what we are starting now) until chapter 4. Second, they start with the “newer” and “weider” stuff first - indifference curves and utility functions, and then teach budget constraints second. I will go in the opposite order to slowly acclimate you from familiar territory into newer tools and concepts.