We are group one and our topic is preference.
We have an interesting story today. Just be patient, we will show it for you later.
Before that, let’s have a quick review first.
In this chapter, we learned three important concepts-preference, indifference curve and marginal rate of substitution. We should specify consumers’ preference towards different consumption bundles; we should know how to use indifferent curves to depict different kinds of preferences; and we should also the definition and different interpretations of MRS.
To make these knowledges easier to memorize, we prepare a real story for you.
We have a common friend, Xiaofeng, who is also a student in our university. Xiaofeng lives a happy life. However, as workload increases, age grows gradually, and the future is uncertain, especially the midterm is coming, Xiaofeng feels confused and stressed. Under huge pressure, hairless xiaofeng chose to follow his professor and do what the professor have done in his youth-smoking.
And he found that he could get deeply inner peace and happiness when smoking, which can optimize his mental utility.
Soon as the stock was gone fast, Xiaofeng went to the market to buy new cigarettes. Then the problems came.
Are you curious about what happened next? Please invite my partners to show you the following stories.
