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3: Optimal Choice

Last updated

Jul 7, 2021
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- 2.2: Utility Functions
- 3.1: Initial Solution

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3.1: Initial Solution
3.2: More Practice and Understanding Solver
3.3: Food Stamps
This chapter applies the consumer choice model to a real-world example. We will see that the model can be used to explain why someone would illegally sell food stamps. We also tackle an important policy question: If cash dominates food stamps, why not just help low-income people by giving them cash?
3.4: Cigarette Taxes

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