The document discusses consumer choice and utility analysis. It covers key concepts such as: - Utility is the satisfaction derived from consumption and is subjective. - Total utility increases with consumption but at a decreasing rate due to the law of diminishing marginal utility. - Consumers aim to maximize utility given budget constraints. They allocate spending such that the marginal utility per rupee is equal for all goods consumed. - Indifference curves illustrate combinations of goods that provide the same utility level. Utility is maximized at the point of tangency between the indifference curve and budget line. - A reduction in price causes a substitution effect as consumers alter consumption along their original indifference curve, and an income effect as their