https://gdpark.blog/tags/utility/Recent content in Utility on gdpark.blogHugoenSun, 17 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-08-preferences/Thu, 14 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-08-preferences/A casual intro to consumer choice theory — breaking down what a ‘basket’ is, why we pretend only two goods exist, and the ‘more is better’ axiom.https://gdpark.blog/posts/microeconomics-09-indifference-curves-and-utility-functions/Thu, 14 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-09-indifference-curves-and-utility-functions/We get into indifference curves and utility functions — why some baskets make you equally happy, and why piling on more stuff gives you less of a kick each time.https://gdpark.blog/posts/microeconomics-10-marginal-rate-of-substitution/Thu, 14 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-10-marginal-rate-of-substitution/MRS is basically something we already know deep down — here’s why ∆y is always negative on the indifference curve, plus a Coke vs. Pepsi reality check on diminishing MRS.https://gdpark.blog/posts/microeconomics-21-compensating-variation-and-equivalent-variation/Sun, 17 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-21-compensating-variation-and-equivalent-variation/We dig into compensating and equivalent variation — two ways to pin down how much a price change is worth by pretending it was an income change instead.