Reference no: EM131431720

Explain the consumer's problem in as much detail as possible. Your answer should include an explanation of the problem itself, brief description of ICs and their properties, how consumers become "happier," how price or income changes can affect their purchasing decisions, and why every consumer solving their consumer problem individually creates a Pareto efficient outcome for society. Feel free to incorporate graphs, drawings, and diagrams relevant to the problem. Use made up income, prices, and happiness levels if you wish, too.