Consumer Preferences: This first section contains some very abstract material and, therefore, it is often helpful to start with some specific examples.  For many students the ‘special’ or ‘extreme’ cases of perfect substitutes and perfect complements are an easier place to start than a more ‘realistic’ preference map with diminishing marginal utility or a changing marginal rate of substitution.  The special cases also have the benefit later in the chapter of not being solvable via a generic, recipe-based approach.  Careful treatment of these cases both now and later will help to reinforce the intuition of the model.

 

In addition, a discussion of the basic underlying assumptions of the model of consumer preference and possible violations helps reinforce the results to come later.  Occasionally students will point out that one or more of the assumptions about consumer behavior can be violated (transitivity is the most likely target).  This is a good opportunity to point forward to the section at the end of the chapter on behavioral economics and to discuss why assumptions are necessary in modeling.