House Hunting

Walter and Skyler are in the market for a new house. Walter is attempting to maximize his utility by proposing to Skyler a larger house instead. In other words, Walter is trying to move onto a higher indifference curve. However, their limited budget represents a constraint to Walter’s utility maximization problem.

See more: budget constraint, indifference curve, interdependent utility functions, preferences, tradeoffs, utility, utility maximization