https://gdpark.blog/tags/utility-maximization/Recent content in Utility Maximization on gdpark.blogHugoenSat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-12-utility-maximization/Fri, 15 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-12-utility-maximization/Mr. Nodap’s got 10,000 won and a choice between booze and smokes — here’s how utility curves and the budget line team up to nail the one combo that maxes him out.https://gdpark.blog/posts/microeconomics-13-utility-maximization-with-special-utility-functions/Fri, 15 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-13-utility-maximization-with-special-utility-functions/We knock out utility maximization for two funky non-Cobb-Douglas functions — one with a surprising shape and one for perfect substitutes — and spoiler: both consumers go all-in on x!https://gdpark.blog/posts/microeconomics-14-utility-maximization-with-coupons-and-subsidies/Fri, 15 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-14-utility-maximization-with-coupons-and-subsidies/Walking through how government housing subsidies mess with your budget line — turns out it’s not as scary as it sounds, just a little funky shaped.https://gdpark.blog/posts/microeconomics-15-utility-maximization-under-a-membership-scheme/Fri, 15 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-15-utility-maximization-under-a-membership-scheme/A fun walkthrough of how a membership fee shifts your budget line — and why some people are actually better off never joining in the first place.https://gdpark.blog/posts/microeconomics-16-utility-maximization-with-savings-and-loans/Sat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-16-utility-maximization-with-savings-and-loans/We tackle the last weird budget line — loans let you borrow against next year’s income, savings stack up interest, and the slope ties it all together.https://gdpark.blog/posts/microeconomics-17-price-consumption-curve-and-demand-curve/Sat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-17-price-consumption-curve-and-demand-curve/We trace what happens when the price of good x keeps dropping, connect all the utility-maximizing bundles into a price consumption curve, and boom — that’s literally where the demand curve comes from.https://gdpark.blog/posts/microeconomics-18-engel-curve-and-income-consumption-curve/Sat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-18-engel-curve-and-income-consumption-curve/We derive the income consumption curve and Engel curve step by step, then use their shapes to figure out whether a good is normal or inferior — think ramen vs. electricity.https://gdpark.blog/posts/microeconomics-20-backward-bending-labor-supply-curve/Sat, 16 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-20-backward-bending-labor-supply-curve/As wages rise you work more — until you don’t: here’s why the labor supply curve bends backward once you’d rather enjoy your money than grind 24/7.