Individuals are probably unique in how they derive pleasure from consumption. You and your friends may enjoy similar movies, food, clothing, and vacations, but even when your incomes and the prices you have to pay are identical, you probably make different consumption decisions. This is because you have different tastes, or preferences, or (in the vernacular of economists) different utility functions.

   In this section we'll look at how consumers make choices and how these choices change when prices and incomes change.

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