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Results tagged with mathematical-economics
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user 19689
The application of mathematical methods to represent theories and analyze problems in economics.
0
votes
1
answer
115
views
What is the reason behind the demand function of a perfect complement good?
so I know that usually the income curve is equal to:
$$x_1p_1 + x_2p_2 = m$$
if we rearrange this equation we get that the demand for good one ($x_1$) is equal to:
$$x_1 = \frac{m-x_2p_2}{p_1}$$
None …
- 313
4
votes
2
answers
2k
views
Purpose of a monotonic transformations in utility functions
Based on my economics book, monotonic transformations for a utility function can look something like this:
$f(u) = u + 17 $ or even like this: $f(u) = u^3$
That being said what it purpose in the cas …
- 313