Answer to Question #304672 in Microeconomics for Uchi

Question

What do you understand by the concepts is intra and inter temporal choices model

Answer 1

It refers to decisions, such as spending habits, made in the near-term that can affect future financial opportunities. Most choices require decision-makers to trade-off costs and benefits at different points in time. The decisions with consequences in multiple time periods are referred to as intertemporal choices. Theoretically, by not consuming today, consumption levels could increase significantly in the future, and vice versa