# 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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### How to determine elasticity of demand when equation has more than one variable

How should one go about determining the own price elasticity of demand of the following: Assume that the market demand for barley is given by: Q=1,900−4PB+0.1M+2PW , where Q is the quantity of barley ...
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### Can a preference relation not satisfy monotonicity and still be represented by an Utility function?

The book I am working with (Microeconomics Theory by A. Rubinstein) states that: "In the case that preferences are represented by a utility function, preferences satisfying monotonicity (or ...
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### Can the following statement be rationalized if it yields a choice function?

A person choose an alternative to maximize another person's suffering. I thought we could define a sort of relation where the person suffers more from x than y. And if we can always do this, we can ...
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### Can the following behavior be rationalized if it yields a choice function?

The decision maker has an ideal point in mind and chooses the alternative closest to it. I am not sure if I am right, but in order to rationalize it, we first have to construct a choice function. So, ...
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### How to create a composite good?

Let's say I would like to create some composite score for multiple of goods... EDIT: More concise version based on @BrsG comments... I would come up with the following scenario. I have a consumer with ...
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### Kuhn-Tucker(KT) conditons EMP

How should I formally solve the expenditure min.problem (EMP) by using KT conditions? Since I should follow the notation of the Mas-Colell, I should write: $\min~$ $p \cdot x$ , s.t. $u(x) \ge u$ ...
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### Do Aggregated consumers make sense?

Aggregated consumers as a biased concept (in case of cross-price elasticity)? I try to approach aggregated consumption data as if it was a new consumer (similarly to approaching average data as if it ...
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