# Consumer Theory

## Budget Constraints

Graphs

## Preferences

Graphs

Explanations

## Utility Functions

Graphs

- Indifference Curves
- Indifference Curves for Utility Functions
- Utility Functions and Indifference Maps
- Visual Derivation of the MRS Formula
- Normalizing a Utility Function
- Perfect Complements
- Perfect Complements Example: Sugar and Tea
- Perfect Substitutes (non-normalized)
- Perfect Substitutes (normalized)
- Perfect Substitutes Example: Two-Liter vs One-Liter Sodas
- Cobb-Douglas (non-normalized)
- Cobb-Douglas (normalized)
- Constant Elasticity of Substitution (CES)
- CES Indifference Map
- Quasilinear
- Monotonicity and Utility
- Weak Monotonicity and Utility
- Satiation Points and Utility

## Consumer Optimization

Graphs

- Preferred and Affordable Sets
- Developing Intuition for Optimality
- Highest Utility Along a Budget Line
- The “Gravitational Pull” Toward Optimality
- The MRS, the Price Ratio, and Total Utility
- Cobb-Douglas Utility along a Budget Line
- The Lagrange Method with One Good
- The Lagrange Method: Cobb-Douglas (old)
- Potential Corner Solutions
- A Corner Solution with Quasilinear Utility
- A Corner Solution with Quasilinear Utility (extended to show tangency condition)
- Quasilinear and Lagrange (old)
- A Corner Solution with Perfect Substitutes
- Potential Kink Solutions
- Optimization with Kinked Indifference Curves
- Optimization with a Kinked Budget Constraint
- Optimization with a Kinked Budget Constraint (limited discount)
- Utility Maximization with Concave Utility (old)
- Utility Maximization Subject to a Budget Constraint (paired with next graph)
- Cost Minimization Subject to a Utility Constraint
- Utility Maximization, Cost Minimization, and the Lagrange Tangency Condition
- Cost Minimization with Perfect Complements

## Demand

Graphs

- Optimal Choice as a Function of Prices and Income
- Relationship between Indifference Curve/Budget Line and Demand Diagrams
- Relationship between Indifference Curve/Budget Line and Demand Diagrams for Multiple Utility Functions (old)
- Cobb-Douglas Optimization
- Cobb-Douglas Demand
- Optimization with Perfect Complements
- Demand for Perfect Complements
- Optimization with Perfect Substitutes
- Demand for Perfect Substitutes
- Quasilinear Optimization
- Demand with CES Utility

## Offer Curves

Graphs

- Utility Maximization and Offer Curves for Different Utility Functions
- Demand and Engel Curves for Different Utility Functions
- Demand and Price Offer Curves: Cobb-Douglas
- Engel and Income Offer Curves: Cobb-Douglas
- Demand and Price Offer Curves: Perfect Complements
- Demand and Price Offer Curves: Perfect Substitutes
- Demand and Price Offer Curves: CES
- Price and Income Offer Curves: CES

## Income and Substitution Effects of a Price Change

Graphs

- Hicks Decomposition
- Hicks Income Effect
- Hicks Substitution Effect
- Hicks Decomposition Static Example with (Imperfect) Complements
- Hicks Decomposition Static Example with (Imperfect) Substitutes
- Hicks Decomposition Static Example with Variable Complementary (CES)
- Income and Substitution Effects (Hicks Approach - old)
- Hicks Income and Substitution Effects (comprehensive)
- Slutsky Income and Substitution Effects (comprehensive)
- Slutsky vs. Hicks: Cobb-Douglas
- Slutsky vs. Hicks: CES
- Income and Substitution Effects (Slutsky Approach - old)