Econ212+Spring2013+Le_Linh+Notes_for_Week_03

Also there can only 1 optimal choice on each budget

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Unformatted text preview: the budget line. Sufficient condition: à༎ tangency satisfied, all of them interior, but only 2 of them are optimal. à༎ in general, the tangency condition is only necessary condition, not sufficient 1 case where it is sufficient: convex preferences à༎ Tangency means optimal. Also, there can only 1 optimal choice on each budget line in this case (while the figure above shows that there can be more than 1 optimal points under some circumstances) MRS = slope of...
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