Lecture B4 (2020-09-08): From Indifference to Demand

In this lecture, we round out our discussion of the shape of indifference curves and marginal-rate of substitution. We cover not only indifference curves for multiple goods but also consider indifference curves when there is a mixture of goods and bads. We then pivot back to consumer choice theory and the role of price and income. That allows us to introduce so-called "normal goods" and "inferior goods." We close with a hint of our future work using demand curves (and demand and inverse demand functions) to do calculations related to consumer choice.