run or –8/4=–2. The specific choices along the budget constraint line show the combinations of affordable T-

shirts and movies.

FIGURE 6.2 A Choice between Consumption Goods José has income of $56. Movies cost $7 and T-shirts cost $14.

The points on the budget constraint line show the combinations of affordable movies and T-shirts.
140 6 • Consumer Choices

José wishes to choose the combination that will provide him with the greatest utility, which is the term

economists use to describe a person’s level of satisfaction or happiness with their choices.

Let’s begin with an assumption, which we will discuss in more detail later, that José can measure his own

utility with something called utils. (It is important to note that you cannot make comparisons between the utils

of individuals. If one person gets 20 utils from a cup of coffee and another gets 10 utils, this does not mean
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