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Optimal choice on budget line

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Intro to finding the optimal choice using budget lines and indifference curves

Intro to finding the optimal choice using budget lines and indifference curves

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Intro to finding the optimal choice using budget lines and indifference curves

4:07

About this lesson

Optimal Choice on Budget Line Overview:
Finding the Optimal Choice
  • Maximize Utility on Budget Line
  • Indifference Curve Intersects Budget Line
  • Maximized when Budget Line is Tangent to IC

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Video 1 of 11

Intro to finding the optimal choice using budget lines and indifference curves

4 min

Selected

How price changes shift the budget line and optimal choice

9 min

How changes in income shift the budget line and optimal choice

5 min

Checking if a bundle is affordable after price changes

2 min

Comparing budget lines to determine preferred price combination

9 min

Checking if a bundle is affordable after price changes

2 min

Comparing two price scenarios using budget lines and indifference curves

8 min

Finding Kevin's optimal tea and pizza combination on a budget line

4 min

Finding optimal choice after a tea price increase to $4

3 min

Finding Kevin's optimal chocolate and vanilla purchase on a budget

4 min

Finding optimal choice when vanilla price increases to $25

4 min