Consumer Preferences: Optimal Choices and Economic Effects

This lecture covers consumer preferences, focusing on indifference curves, the postulate of non-satiation, and the marginal rate of substitution. It also delves into the concepts of marginal utility, budget constraints, and the graphical representation of optimal choices. The discussion extends to the principles of microeconomics applied to labor supply and financial capital supply, exploring the impact of wage rate changes and interest rate variations on individual decisions. The Giffen paradox and the theory of saving supply are also addressed, shedding light on the complexities of consumer behavior.