Chapter Two Budget Constraint 预算约束
Chapter Two Budget Constraint 预算约束
Structure Describe budget constraint -Algebra Graph Describe changes in budget constraint Government programs and budget constraints Non-linear budget lines
Structure Describe budget constraint –Algebra –Graph Describe changes in budget constraint Government programs and budget constraints Non-linear budget lines
Consumption sets A consumption set(消费集) is the collection of all physically possible consumption bundles(消费束)to the consumer
Consumption Sets A consumption set （消费集）is the collection of all physically possible consumption bundles （消费束）to the consumer
Consumption bundle A consumption bundle containing x, units of commodity 1, x2 units of commodity 2 and so on up to xn units of commodity n is denoted by the vector x,, x23
Consumption Bundle A consumption bundle containing x1 units of commodity 1, x2 units of commodity 2 and so on up to xn units of commodity n is denoted by the vector (x1 , x2 , … , xn )
Physical constraints Non-negative: Consumption set X={(X1…,Xn)x1≥0,…,Xn≥0} You only have 24 hours a day Subsistence need Etc
Physical Constraints Non-negative: Consumption set: X={ (x1 , … , xn ) | x1 0, … , xn 0 } You only have 24 hours a day Subsistence need Etc