Work through a random set of externality scenarios one step at a time. Identify who creates the spillover, whether it helps or harms third parties, how the social curve differs from the private curve, whether the market produces too much or too little, and which policy moves the market toward the social optimum.

Work through three random consumer scenarios to derive a demand curve from utility-maximizing choices. The exercise uses interactive graphs and guided questions to connect changes in a good's price with budget lines, optimal bundles, and movements along the demand curve.

Explore how allocating time among health production, sickness, and home-good production creates a backward-bending frontier. Move along the frontier, examine key points, connect preferences to choices, check your understanding, and see how education or medical efficiency shifts the entire curve.