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The
thec
foundtional
that
Toeleeoe Reationsstchus
to allocate
ekamnigs
ompas
eithes
CONSumes choice iS^
a
These dssosibel hou
ombimtions of^ ods, kased
Copletene
ept (^) i mícsDeceomics
hao iodividals make^ decisioos
tei Limi-ted
(Like (^) tine,
money (^) etoy amog vasios qods^ eÍAas.
At
he
this
PAGE NO.:
o.
he
ditfeest brles
DATE:
COSOneSS
A
3
A
is<at lnst
t (^) implies (^) that the
SOSUSCes
as
Sank
theis
Psopestiss Axioms^ of^ sfesne
to
B
bas
a
as B
ell-defiral
bondlasey eithes
uFoonsitit
be
sue
least
antaios
Csiticizedaxiom.
oherse
This is
Sathes
then
bndle is
a basic
It eflects
not
B>C (^) theo AC
C B
fem tesmed
os
the most
as
is
haro (^) extsemes
that
osse, (^) thar less
is also
as
4s (^) hettox
heSe (^) aSe.
DATE:
than
B
Leads (^) to šcall changas
must
at east C~A
that
at
is close^ to^
A
tho, Ua)>^ U(B)
An idifece
bndles o ods (^) that vide
lcvel sifactiom
tontity. ylextoi ly^ . corrplateros an
CUSve.
IC
GdX
Some of the topes
b
i
pooy
ATE
otility
CNES (^) borllea
epsscrta all
the
Lhe
Game
the
qodd
God
qood (^) X
d
Bod
BLiss (^) bíot
PAGE NO.:05.
DATE:
Goodx
CoOSmess
hen
unciont
wmbcK t^ each bdle
Fozsrng of Diltty Furctionz
mathematícall (^) eASAN tation^ of a
Paefences.
as Resact (^) sobsttotes
bXX,)
= x
+Kx
b
Pesat plements
Steps
dy Cobb- (^) Doglas
Let
this
prsefos6 (^) bndle aer^ boodle^
B
UA)
B)
Giveo;- (^) Uxy)
#DesÍvotion
o
Daman (^) Functions fm
Fucis
be
gotisst dex
tham to
PAGE NA.: o
DATE:
sch that^ if a
iel demand
Fuction
P P
SO, m PkX+
F
fd
x
Pa X
S uxx) (^) Xx,Eicd dercard nen
ettig p lagagian
MMES
potig
XI
A
in
2PI
X
X>
P
PX
P
DATE:
P
S O(XX) = 2x1+3Xs
nIf all^ icone (^) is spent
m 120; (^) P=
B=6 ohat^ is^ thedemand fos^
X
bXy
Let
4 all (^) icome
Cleasly (^) ux)> u(x,).
piBes be
20
Pi+P
spent
be P (^) D, So
Pk P
min(Áxg FX
PAGE
HO: Jo•
DATE:
ma PX+ P, x
X= 20_al^ iecome (^) pet)
So
Hepce
m=
4XI (^) bX
3ki
=I02s t^ 52O
X =
26 incore
350
6x
X=2S
X=o
Eiod
+8X,
demad
X
t3x,
X
t4X}
PLXI (^) +PX
PAGE NO.:Jl•
DATE:
satio of^ perdi
Hence denand
f I
X S
Steps
sl Let icAs be
abaue
ie
Aot (^) the
Valwe
X X
X
ConvOSt
Fnotion
m-PLX
X
eventaly
X
di
XI
La t^ X
X
PeX
ust
P
PI
|PAGE NO.: (^) 23.
in he
the utiLity^ fone
ate
DATE:
Bod (^) demand e
Pz
m PX
to
P
OxX) = 3K tX^ Rod (^) demand
SE
IE
mP
P
ICz
X
P
PLXL
P
|DATE:
Pz
Foctions
puti
Pz
PL
lodisect
OHLit
FxpCike Furctior
Indisect Olild
It aphas the
Qan
the
goa
achieve given theis icom
Fuetion
ConSmeSK
IHi_alled iodisect
OxpeSSES w-+iLiky^ in tesms
Saths.
Poopesties
As he
incoe
expseeso
the pods
otilik
the
dilty that.^ a
income constaot^ tho
The
indisect
4liky foncn
is dfined^
a
Psices;
ant inoseAse. i:p
nAbo Decsoosig^ in^
Iocome
Corsmer
bacause itadoesn!
aahieue
tersms
f
indis) fonctions
Level f^ wtiliky^
it
ot highes
p
pices fgee
as
consSUnesK icAMe
As cone^ incsaSS,^ boldig^ psices^ onstant
sieve atecst the
mar
achievable
Hence (^) icisaat
T5is
hích is derated by e(py)
Expeatse
achiee
adhieig
the
is
P,
Cestain leel
expeitsene
minm (^) expEOdkse Hequised to
the
|PAGE WD,:^ 14. h
Level
DATE:
opetre fuccn^ is defined
Cost (^) side
otlity (^) level ohch is
bo (^) achieved
aoa- Dagasirg io (^) Picesi
Fospties Expecdtrse (^) Funotico i
othes. thing constant
iaeases
As (^) the
I4 (^) all pices
desied (^) utilty (^) level iocss
alsoSaes
icseass,
ainig (^) the this coostat^ the minimor
Xpeke
minimom
the
achiee the sarne^
utiliy (^) Level
Coticoi
are (^) saled
ouity (^) in Picesl;
PAGEHO
emin expardtze
astaio (^) otilte
dacostg ate
DATE:
neede (^) alko
icseASeS
· iey (^) de >
positie,acssad a miim experdth
as
ieyeARAÈ)=de(Eo,)
the (^) Sao
20
leveie
poices (^) încsaase.
iocseases at
to achieve
Theexperytse fune
is caotouas
