Budget Constraints revisited The endowment point is always on x2 the budget constraint p1X1+p2X2=p1o1+p202 So price changes pivot the constraint about the endowment point p1x1+p2X2=p101+p202
Budget Constraints Revisited x2 1 x1 2 p1 x1 + p2 x2 = p11 + p22 The endowment point is always on the budget constraint. p1 x1 p2 x2 p1 1 p2 2 ' ' ' ' + = + So price changes pivot the constraint about the endowment point
Budget Constraints revisited The constraint p1X1+p2x2=p1o1+p202 Is p1(x1-a1)+p2(x2-02)=0 That is, the sum of the values of a consumers net demands(净需求) s zero
Budget Constraints Revisited The constraint is That is, the sum of the values of a consumer’s net demands （净需求） is zero. p1 (x1 −1 ) + p2 (x2 −2 ) = 0. p1 x1 + p2 x2 = p11 + p22