Well-Being Possibility Frontier/Indifference Curves AND The Corresponding Supply and Demand Graphs

WBPF = Well-Being Possibility Frontier (Orange)

Green is for preferences (indifference curves above, demand below)

MRT = Marginal Rate of Transformation: the opportunity cost of the other things that must be sacrificed to get one point more of happiness

MRS = Marginal Rate of Substitution: amount of other things the individual is willing to sacrifice to get one point more of happiness

Comparative Statics Exercise #1:

Comparative Statics Exercise #2:

Comparative Statics Exercise

Comparative Statics Exercise #4: