# Ch8 - Chapter 8 Ky L y> Kx L Kf L x f< Kh L" h"...

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Unformatted text preview: Chapter 8 Ky L y > Kx L Kf L x f < Kh L " h ! " \$ %' ! (! ) ! ! % ! " #& " * Qh Q* f #\$ & K ′ = αK , * \$& " ! # + " * // L ′ = α L, , . + ! // % & 1 α > 1. ( ! + K ′ αK K = = L′ αL L - 0 // ! * ) " " " (!! % !% ' + 2 ′ p* p* x +p = > x = p* # ′ p* p* y y * ′ #, ! w P = G( x ) , r Py # / 32 ) % Px ! Py 2 ) ! 1 Chapter 8 4 5 Y * Qh C* f u* f C * h Q* f P* * uh P* X Y P* / P*/ * Qh C* f * Ch u* f * uh Q* f X 2 Chapter 8 6 4 ! + , ! Eh * ! Ef Yh Xh * ! " " Yf Xf * 7 # . !! , 6 2 8 * ! * " ! .. 2 1 . 7 " Ef 8 - Xh * ! Ef % K Eh Kh Yh Y Yh Xh A Ef Yf Xf Kf Yf Lh = L f L Xf Xh X 3 Chapter 8 9 : 8 ; # % ! ! ! " px py ! < + ! " ! Y Consumption Expansion Path C3 C2 C1 Increase in income keeping prices fixed X , = 4 Chapter 8 > ( 13+ A. ! #\$ %1 * ' " ) . # \$ ! % ! ! 8 ? ! #\$ % 8 ! " ' " ) . #\$ % ! ! " " " ! ! " ! " 5 ...
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