• Demonstrate how price and income affect a consumer’s budget line.
• Determine a consumer’s best choice based on his preferences and budget line.
• Understand how find a consumer’s best choice by maximizing a utility function.
• Analyze the effects of changes in prices and income on a consumer’s demand.
• Show how volume-sensitive prices affect a consumer’s budget line and choices.
• Explain how economists determine consumers’ preferences based on based on their choices.