Consumer Choice and Demand

Formulate a consumer's utility maximization problem subject to a budget constraint.

Solve for optimal consumption bundles using the Lagrangian method.

Derive Marshallian (ordinary) demand functions from utility maximization.

Formulate the expenditure minimization problem and derive Hicksian (compensated) demand functions.

Decompose the effect of a price change into substitution and income effects using the Slutsky equation.

Analyze how changes in prices and income shift demand using comparative statics.

Construct and interpret indirect utility and expenditure functions.