Indifference Curve 再一次接触这个Graph,是在intro to micro上,讲到indifference curve. 在同一条indifference curve上的商品combination对于消费者来说是equivalent的,越往外的indifference curve越能给消费者带来更高的Utility. 让我眼前一亮的一点就是,因为每个消费者preference的不同,所以indifference curve会有不同的弯...
What is the curve which is drawn by connecting the tangency of the budget line with the indifference curve? What is it called? How does a budget constraint explain consumer choices when used in conjunction with indifference curves? What does the tangency between an...
Given a budget constraint and an indifference curve map, how do you know the bundle to consume that maximizes satisfaction? Show your answer with a graph AND explanation. The marginal rate of substitution ___ as one moves downward along ...
federalism and the soft budget constraint:联邦制和软预算约束 热度: 范里安微观经济学预算约束Budget Constraint 热度: Indifference Curve & Budget Line:无差异曲线和预算线 热度: 10.预算约束线(budgetline):又称消费可能性线或价格线。表示消费者在一定的个人收入 ...
Budget constraint Jane can afford any bundle that satisfies The inequality where (P1)(X1) + (P2)(X2) =< m ; This inequality is called the budget constraint. A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his...
Budget constraint is all of the combinations of goods that consumers can purchase in light of their income as well as the current prices of these goods.
between the budget constraint and the indifference curve. This means that for the optimal bundle the slope of the indifference curve is equal to the slope of the budget constraint MRS = ratio of prices The optimal consumer choice This condition gives a central result of consumer theory: ...
Two ways to derive MRS: Along the indifference curve xy 2 = C. c y = . x Thus, dy √c y MRSd = = = . dx 2x3/2 2x Using the conclusion aboveu 2 xy y MRS = = = .u2xy 2xy2 Budget ConstraintThe problem is about how much goods a person can buy with limited income. ...
Definition:TheBudget Line, also called asBudget Constraintshows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level. We know that the higher the indifference curve, the higher is the utility, and thus, utility maximizing...
A budget line is also called a budget constraint because it limits total consumption possibility of a consumer. Total consumption in dollars at all points on the budget line equals total income. If Product A is plotted on y-axis and Product B on x-axis, the budge line touches y-axis at...