The document discusses consumer preferences and choice. It defines utility as the satisfaction derived from consumption and explains the concepts of total utility, marginal utility, and diminishing marginal utility. It contrasts cardinal and ordinal utility analysis, discussing indifference curves and how consumers seek to maximize utility subject to their budget constraint. The summary also mentions revealed preference theory, consumer equilibrium conditions, and how consumer surplus is measured as the difference between the maximum price consumers are willing to pay versus the actual price.

1. Chapter 4 Consumer Preferences and Choice

12. Exceptional Shapes of Indifference Curves Q X Q Y O Q X Q Y O Q X Q Y O Q X Q Y O Social Bads Perfect Substitutes Perfect Complements Irrational Behaviour