Disc5 - Economics101Discussion5,Fall2009 

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Unformatted text preview: Economics101Discussion5,Fall2009  IndifferenceCurve:alinethatshowsalltheconsumptionbundlesthatyieldthesameamountoftotal utilityforanindividual.  BudgetLine: alinethatshowstheconsumptionbundlesavailabletoaconsumerwhospendsallofhis orherincome. Thebudgetlineofagivenincome(I),andthepricesPX andPY ofgoodXandgoodYcan beexpressedas: I PX X PY Y Y I PY PX X  PY  SubstitutionEffectvs.IncomeEffect:   Economics101Discussion5,Fall2009   Economics101Discussion5,Fall2009   ...
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This note was uploaded on 11/27/2011 for the course ECONOMICS 101 taught by Professor Kelly during the Fall '10 term at Wisconsin.

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