ECON 4001.01 Lecture Notes - Lecture 5: Horse Length, Sm U-10 (Austria-Hungary), Xz
17 Sep 2020
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Choice choose the best bundle from all affordableones. Solutionto consumermaximatization problems pix tax em a condition i ofincestcame those. mn. Optimalctroice where the indifference curve is tangent to thebudgetary determined byincome. Qf interioroptimum the tangencycondition is only a necessarycondition for optimality not a sufficient condition boundaryoptimum kinkytaste it. X t x z when indiffcurve overlaps w l bc. 2 perfect complement u lx ixz min x x y. 3 concave indiff curve describes when consumerg like mixtures more than extremes ii in. O why gas tax quantity tax t on x. H t pi x t pzxz m x a it. Govern"t revenue r t x withincome tax r t xi. P x t p xs m r m t x. P x t t x t pzxi m l t tp ix 1pzxz m name a quantitytax. U 2 3 l 213 312 25 a. Xtay 12 c is 2. 3 affordable yes d mrs e find all points satisfying mrs.
