8 Minutes to Master Marginal Analysis & Consumer Choice for AP Micro

AP Micro 1.6 | Marginal Analysis and Consumer Choice: In this video I talk about Marginal Cost-Benefit Analysis and the Consumer Choice Problem, also known as the Utility Maximization Problem. I also talk about why the solution to the Consumer Choice Problem happens when the Marginal Rate of Substitution (MRS) is equal to the ratio of the prices. Timestamps: 0:00 - Intro 0:38 - Meaning of "Marginal" 1:45 - Diminishing Marginal Utility 3:28 - Consumer Choice Problem 4:59 - The Budget Constraint Explained 5:39 - MRS and Solving the Consumer Choice Problem