I. Budget constraints（Limited resources）

Construction ??

The more is better

??Budget＝Income（沒(méi)有Saving OR Borrowing）

??Assume Y have given by parents to spend for

??P是買(mǎi)Pizza的數(shù)量 C是買(mǎi)Cookie的數(shù)量

美國(guó)Household家眷

例子（上面這個(gè)時(shí)間軸）

Opportunity Cost機(jī)會(huì)成本

Slope = Marginal Rate of Substitution

--choices with budget constraints

II. Weight Watchers (Weight loss)

Do: set up budget constraint & ask you follow it

Loss weight--dieting X

eg. set up point values to every good you might consume

Example

budget: 30 points

• M Lunch--blown the whole budget for the day

1 point+14 points(mac)+10 points(fries)+6 points(coke)

• A Lunch[liar]--12 points(10 nugget)+1 point(apple slices)+Diet Coke(0 point) Dinner(13 points)

Shocking Budget Constraint

comparative statics

• change prices

pivot inward dots&stuff

opportunity set: the set of choices avaiable to you given your income and market prices.(Area)

Constrained Choices

當(dāng)tangent和Indifference curve 越接近, IC就越高

Utility function& Indifference curve & Opportunity cost??（考intuition直覺(jué)）

derivatives（derivation）??

目的：Marginal Benefit＝Marginal Cost

Poverty Line

SNAP（N是nutrition）

debit card from government to buy food

rigmarole繁瑣復(fù)雜？

Cash transfer

給個(gè)debit??只能用在food上的錢(qián)和stamp沒(méi)差別

normative economics: paternalistic家長(zhǎng)式作風(fēng)的

cocaine可卡因

taxpayers goal: help poor people

contend競(jìng)爭(zhēng)v.

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