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...Chapter the theory of consumer choice principles economics th edition n gregory mankiw page introduction a this is an important as it explains how we make decisions by comparing psychological benefits alternatives to their costs choosing those that increase our welfare b regrettably will not have time cover in class c method for all only affecting consumers i you ever turned down higher paying job because nature or location d illustrates one central people attempt maximize subject constraints case talk about utility instead and constraint income e applies framework developed three household do demand curves slope downward ii wages affect labor supply iii interest rates saving budget what can afford figure s p def limit on consumption bundles since q then x y line be defined intercept shifting up increases if shifts out right price pivoting around horizontal axis preferences wants representing with indifference curve shows give same level satisfaction marginal rate substitution at which...