# Tag Info

This might just be a misunderstanding. The textbook contains various passages like e.g. "An alternative approach holds real income (or utility) constant while examining reactions to changes in $p_x$" (p. 151). When this terminology is introduced, however, "real" stands in quotation marks. This is in the context of explaining the ...
Real income and utility are not the same thing but utility can be expressed as a function of income because income is what allows you to consume goods and services. For example, let us assume there are only two goods $x_1$ an $x_2$ and consumer is given budget $p_1 x_1 + p_2 x_2 = m$, where $p_i$ are prices for good 1 and 2 respectively and $m$ is an income. ...