# Questions tagged [microeconomics]

Microeconomics is a branch of economics that studies the market behavior of individual actors (usually firms and consumers) and the aggregation of their actions in different institutional frameworks (usually the market).

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### labor leisure model, quasilinear preferences

There is a quasilinear utility function $u= (1-t)wl - p(l)$, where $l$ is labor supply. I don't quite understand what happens, if the budget changes (due to $w$ or $t$) since it is quasilinear. Does ...
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### Equivalent assumptions in Revealed Preference and Classical Preference Theories

I have read that there are dualities between Revealed Preference Theory and Classical Preference Theory. Suppose, I have $X$ as the set of all conceivable choices, and $\mathscr{B} \subseteq 2^X$ the ...
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### Zero-Sum Game with two Mixed Equilibrium Interpretation

In the attached Zero Sum Game, i have solved for two Mixed Nash Equilibrium, $(l,m)$ and $(m,r.)$ In $(l,m)$ the payoff is $8/5$ to $P_1$, and $-8/5$ to $P_2$. Here $P_1$ mixes between Top and ...
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### Are there Sequential Equilibria that are not Trembling Hand Perfect Equilibria, that don't involve Weakly Dominated strategies?

I'm taking an advanced course (graduate level) in Game Theory. My class has covered several equilibrium concepts, up to Sequential Equilibrium. The professor said that there are already more ...
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### Total Effect, Substitution Effect, and Income Effect

We were given this information to compute the total, substitution, and income effects. $U=7.5x^{0.3} \cdot 5y^{0.2}$, $\text{Income} = 10,000$, $P_x = 5$, $P_y = 2.5$, $P_{x'}=4$. I am having a hard ...
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