This Learning Path is a bit more of a mixed bag than the previous one, finishing off our consumer choice problem, looking at the some useful implications of this in demand theory before moving on to other types of demand theories.
We first pick up where we left off in our previous LP and turn the tables on our consumer choice problem in:
Consumption duality II:
Cost minimisation, the mirror image of utility maximisation,
Consumption duality, looking at both problems together before going on to…
Substitution and income effects: why do we buy less of things when the price goes up?
Marhsallian and Hicksian demands: taking into account both or just one of the effects.
Price indices: keeping track of changes in price levels and the implications on demand.
Reshaping consumer theory:
Characteristics demand theory: Why do we really pick one thing over another? Just how picky are we really?
Revealed preference theory: How to guess what someone will pick without having to follow them around permanently.