penn101_09s3

penn101_09s3 - Demand Econ 101: Intermediate Microeconomics...

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Unformatted text preview: Demand Econ 101: Intermediate Microeconomics Consumer Theory II: Individual Demand Analysis Part 1 Jing Li Department of Economics University of Pennsylvania January 28, 2009 Jing Li Intermediate Microeconomics Demand Change in Income Change in Relative Price Demand: choice as a function of exogenous variables Given/exogenous: (specific values of) p 1 , p 2 , m , u Solve for optimal consumption bundle: ( x * 1 , x * 2 ) The same procedure without specific values of these variables yields a pair of functions : x 1 ( p 1 , p 2 , m ) , x 2 ( p 1 , p 2 , m ) How optimal choice changes with respect to exogenous variables; Preferences are assumed to be stable, and hence is omitted. Study the behavior of x 1 ( p 1 , p 2 , m ) . All contents are in previous chapters. This is a summary/terminology section. Jing Li Intermediate Microeconomics Demand Change in Income Change in Relative Price Demand: choice as a function of exogenous variables Given/exogenous: (specific values of) p 1 , p 2 , m , u Solve for optimal consumption bundle: ( x * 1 , x * 2 ) The same procedure without specific values of these variables yields a pair of functions : x 1 ( p 1 , p 2 , m ) , x 2 ( p 1 , p 2 , m ) How optimal choice changes with respect to exogenous variables; Preferences are assumed to be stable, and hence is omitted. Study the behavior of x 1 ( p 1 , p 2 , m ) . All contents are in previous chapters. This is a summary/terminology section. Jing Li Intermediate Microeconomics Demand Change in Income Change in Relative Price Demand: choice as a function of exogenous variables Given/exogenous: (specific values of) p 1 , p 2 , m , u Solve for optimal consumption bundle: ( x * 1 , x * 2 ) The same procedure without specific values of these variables yields a pair of functions : x 1 ( p 1 , p 2 , m ) , x 2 ( p 1 , p 2 , m ) How optimal choice changes with respect to exogenous variables; Preferences are assumed to be stable, and hence is omitted. Study the behavior of x 1 ( p 1 , p 2 , m ) . All contents are in previous chapters. This is a summary/terminology section. Jing Li Intermediate Microeconomics Demand Change in Income Change in Relative Price Demand: choice as a function of exogenous variables Given/exogenous: (specific values of) p 1 , p 2 , m , u Solve for optimal consumption bundle: ( x * 1 , x * 2 ) The same procedure without specific values of these variables yields a pair of functions : x 1 ( p 1 , p 2 , m ) , x 2 ( p 1 , p 2 , m ) How optimal choice changes with respect to exogenous variables; Preferences are assumed to be stable, and hence is omitted. Study the behavior of x 1 ( p 1 , p 2 , m ) . All contents are in previous chapters. This is a summary/terminology section....
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This note was uploaded on 09/27/2009 for the course ECON 101 taught by Professor Dannicatambay during the Spring '08 term at UPenn.

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penn101_09s3 - Demand Econ 101: Intermediate Microeconomics...

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