Friday, March 6, 2009

Sonics

I went to sonics the other day, and looking at the menu, I thought about the concepts of utility curves and budget constraints that we learned in class.
The menu provided lots of choices, these are similar to what we referred in class as goods baskets. The choices that I will end up making will be my basket of goods, and it will give me an utility, according to my own preferences. This is a little different than what we looked at in class, because there are lots of choices, whereas in class, we usually just looked at two goods: denoted usually as x and y. Having more choices would make a more complicated utility function, but since I'm making choices based on my own likes and dislikes, this utility function does not have to be explicitly used.
The money in my wallet now is the budget constraint I face. I cannot spent more than what I have, but spending less would mean that I don't get as much utility as I could. This is also somewhat different than what we did in class, because I don't have a specific budget; I have a maximum budget line, but I have to find a right balance between how much I spent and how much I gain from the food that I buy. Also, if I spent all the money that I have, there is no way that I could eat that much food.
Eventually, I decided to limit my choices down to the dollar menu, and based on my hunger and the money that I'm willing to spent, I bought two dollar tots, a chicken strip sandwich, and a small drink for four dollars total. I love sonics.

1 comment:

  1. I love sonic too! You should check them out between 2-4pm since they run "happy hour". All of their drinks are half price for those 2 hours. Your budget restraint won't change, but you can increase your utility and get more bang for your buck

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