Timeline for Consumer behavior with constrained demand
Current License: CC BY-SA 3.0
4 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Nov 27, 2017 at 21:41 | comment | added | Giskard | No need to answer part 2 here, I will try to clarify and repost it. | |
| Nov 27, 2017 at 21:41 | vote | accept | Giskard | ||
| Nov 27, 2017 at 21:39 | comment | added | Giskard | Very nice walk through, thank you. There is a slight mischief where you assume that the marginal rate of substitution exists in $(x^*,z^*)$ but it is non-essential. It seems that my original question fell to two pieces though. This showed that utility maximization yields the $x^* + \epsilon$ solution as optimal, if $\epsilon$ is small enough. What I would really like to know is if I can make the same claim if there is no explicit utility function, only a demand function. (Given a linear demand function the upper bound on acceptable $\epsilon$ values would probably be $x^*$.) | |
| Nov 26, 2017 at 13:11 | history | answered | Alecos Papadopoulos | CC BY-SA 3.0 |