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This is just semantics, but MWG doesn't use the Weierstrass Theorem in its Math Appendix when using the fact that a continuous function always has a max value on any compact set. Some books appeal di …

I have read the statement below and don't quite understand what it means. This is probably because I don't have full understanding of duality with support function in math, but just to foster understa …

I am trying to clearly explain to the concept of "normalization" or relative prices. Because students are so used to just think of prices in absolute terms, it is initially tough to make the leap to t …

Here is my revised version/understanding why price vector is orthogonal to any vector from a bundle on the budget hyperplane to another bundle on the hyperplane: (see below for original question) …

How would you best explain to a student in intermediate micro class that the Hicksian demand for a normal good is more inelastic than the Walrasian demand without heavy differential calculus? When I …

Is diminishing nature of utility function in consumer theory stemming from the assumption of convexity on the preference relation $\succsim$? My understanding is: $\succsim$ is convex. Then, $u(. …

I updated my proof to a general version as follows: please share your thoughts & 2cent. Thanks Show a monotone continuous complete preorder on $\mathbb{R}^L_+$ has $y\geq x\rightarrow y\succsim x$. P …

[ADDED/MODIFIED] : I have put my proof where the commodity space is simply $\mathbb{R_+}$(e.g. nonnegative reals) for simplicity below. Please share your 2 cent. I have put words to aid my own underst …

I am reading MWG's explanation in Chapter 3 when showing continuous preference relation implies the existence of continuous utility function. First, the authors show $u(.)$ is continuous by using the …

Often I see both in micro and macro two common terminology : Additively separable. Linear in price or linear in probability. I understand exactly as they sound by looking at the functional form …