Net demands Suppose(@1, @2)=(10, 2)and p,=2, p2=3. Then the constraint is p1x1+p2X2=p11+p202=26 If the consumer gross demands(毛需 求)(X1*,2=(7,4),then3good1 units exchange for 2 good 2 units. Net demands are x-1=7-10=-3and 2-O2=4-2=+2
Net Demands Suppose and p1=2, p2=3. Then the constraint is If the consumer gross demands (毛需 求）(x1 *,x2 *) = (7,4), then 3 good 1 units exchange for 2 good 2 units. Net demands are x1 *- 1 = 7-10 = -3 and x2 *- 2 = 4 - 2 = +2. ( , ) ( , ) 1 2 = 10 2 p1 x1 + p2 x2 = p11 + p22 = 26
Net demands p1=2,p2=3,x1-01=-3andx2x-a2=+2s0 p1(X1-01)+p2(X2-O2)= 2×(-3) 3×2 0 The purchase of 2 extra good 2 units at $3 each is funded by giving up 3 good 1 units at $2 each
Net Demands p1=2, p2=3, x1 *-1 = -3 and x2 *-2 = +2 so p1 x1 1 p2 x2 2 2 3 3 2 0 ( ) ( ) ( ) . − + − = − + = The purchase of 2 extra good 2 units at $3 each is funded by giving up 3 good 1 units at $2 each
Net Demands at Different Prices p1(x1-1)+p2(X2-2)=0 At prices(p,, p2) the consumer sells units of good 1 to acquire more units of good 2 X1 Net seller of good 1
Net Demands at Different Prices x2 1 x1 2 p1 (x1 −1 ) + p2 (x2 −2 ) = 0 x2 * x1 * At prices (p1 ,p2 ) the consumer sells units of good 1 to acquire more units of good 2. Net seller of good 1