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OPTIMIZATION WHAT THE CONSUMER CHOOSES. The goal of this chapter is to understand how a consumer makes choices. We have the two pieces necessary for this analysis: the consumer’s budget constraint and the consumer’s preferences. Now we put these two pieces together and consider the consumer’s decision about what to buy.
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The most commonly used mathematical methods in economics relate to optimization problems, and this course focuses on methods of optimization. The first part of the course develops some basic mathematical tools of analysis which we will use to solve optimization problems.
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