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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).

I learnt that $\frac{\Delta x}{\Delta m} \gt 0$ for normal goods, $\frac{\Delta x}{\Delta m} \lt 0$ for inferior goods, $\frac{\Delta x}{\Delta m} \gt 1$ for luxury goods and $0 \lt \frac{\Delta x}{\D … asked May 10 '21 by j3141592653589793238 1answer Given a utility function$u(\cdot)$and two bundles$x$and$y$. Assuming$u(x)=u(y)$. I am to prove or disprove that$x \succcurlyeq y$. Now I'm confused by this. We say$x$is strictly preferred to … asked Jun 7 '21 by j3141592653589793238 1answer I get that PED varies along linear (strictly speaking, affine) demand curves in a way that for a demand function$Q(P)=\alpha - \beta P$: $$|\epsilon_D|=1 \iff \frac{\alpha}{2\beta}=P \land |\epsilon_ … asked Jun 22 '21 by j3141592653589793238 1answer I want to show that the marginal revenue is negative for monopolists. We assume P(Q) is homogenous of degree 1, so it is linear (affine, strictly speaking): P(Q)=a-bQ. As we know, \frac{dP(Q)}{dQ … asked Jun 28 '21 by j3141592653589793238 1answer Why is the partial derivative of x_1^S(p_1, p_2, \overline{x}_1, \overline{x}_2) \equiv x_1(p_1,p_2,p_1\overline{x}_1+p_2\overline{x}_2) for p_1$$ \frac{\partial x_1^S(p_1, p_2, \overline{x}_1, \ … asked May 17 '21 by j3141592653589793238 1answer Say I've got a function$x_1(p_1,p_2,m)$where$p_1, p_2$are the prices for good 1, good 2 respectively and m is the income. Now, I haven't heard of the Slutsky equation yet nor the income/substituti … asked May 11 '21 by j3141592653589793238 1answer Given a budget for two goods$x_1$and$x_2$, a fixed price for good 2 and three prices for good 1 with the corresponding optimal amount of good 1 ($x_1$), I like to calculate the PED for good 1. By l … asked May 11 '21 by j3141592653589793238 2answers As we know that$Q*P=const.$for Cobb-Douglas preferences, we can thus conclude that$\frac{dQ/Q}{dP/P}$is always$-1$:$$QP=const. \implies 0=d(PQ)=Q\ dP+P\ dQ \implies \frac{dQ}{Q}=-\frac{dP}{P}$ …
I understand the expected value of a lottery is $\sum_n^N{p_nL_n}$ where there are $N$ possible outcomes, each with a probability $p_n$ with $n=1,...,N$ and $\sum_{n}p_n=1$ (that's rather trivial I be …