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Unformatted text preview: from a budget set ( p ∗ , w ∗ ) , any change of ε in the price of commod-ity k combined with a change of ε x k ( p ∗ , w ∗ ) in wealth cannot be undesirable. Thus, when indirect preferences are differentiable, the tangent to the indifference curve of the indirect preferences through ( p ∗ , w ∗ ) gives the demand for that budget set....
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This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.
- Fall '10