Consumer Optimal Choice (Utility Maximization) : What You Need to Know

How does a consumer pick the best bundle they can afford? In this video we bring together everything from indifference curves, the marginal rate of substitution, and the budget constraint to find the consumer’s Optimal Choice — the tangency condition where MRS equals minus the price ratio — and cover the two key exceptions: badly-behaved preferences and corner solutions. 📦 Planning to shop online on Amazon? SUPPORT our channel by using our affiliate links! 🌸 AMAZON: https://amzn.to/3W7PVnH 0:00 Intro 0:16 Intro to Consumer Choice 1:03 Quick Review of Budget Constraint 1:53 Quick Review of Indifference Curve 3:13 Finding the Optimal Bundle 5:49 Badly - Behaved Preferences 6:38 Corner Solutions