# Tag Info

### - Economics 101

I have questions about learning economics, is it possible to learn it while studying math? It is not just possible, its great advantage. Economics nowadays is quite mathematical subject. Its not ...
• 57.3k

### Why does quantity supplied increase with price in economics?

Thank you for asking this question. This has confused me too. As a layman, trying to understand these fundamental concepts can be really difficult, especially when attempting to reconcile isolated ...
Accepted

• 1,924
1 vote

### What is the point of Slutsky and Hicksian Compensation. And What to they have to to with WARP?

We study substitution effect of price by keeping income effect to be zero. Since a price decrease is equivalent, let's discuss the scenario where there is a price increase from $p$ to $p'$. Ideally, ...
• 21
Accepted

### Are all subcorrespondences of the weak Pareto correspondence monotonic at the unrestricted domain of linear orders?

The question in the title seems to differ from the question in the body: all/any. At least the question in the title does have a negative answer: Let $A=\{a,b,c\}$. Consider the sub-correspondence of ...
• 13.4k

### Questions about output, quantity, level of output and quantity of output, investment level

Here are answers to several of your questions: a) In the context of supply and demand curves in introductory microeconomics, there is both "quantity demanded" and "quantity supplied&...
• 71

### Pareto Optimal vs Pareto Efficient

The terms "Pareto optimal" and "Pareto efficient" mean the same thing. However, this paper suggests that the term "Pareto optimal" carries a normative connotation, and ...
• 71
1 vote
Accepted

The individual will invest the whole $\\\$ 10,000$, which makes sense, since in the worst case scenario he still gets a positive return. He has to decide which fraction$\alpha$to invest in asset$A$... 2 votes Accepted ### Non-nullity assumption in vNM theorem of cardinal utility A preference such that$p\succeq q$for all lotteries$p$and$q$clearly does (!) have a cardinal utility representation: The utility function over outcomes must be constant, and this is clearly also ... • 13.4k 1 vote Accepted ### Proof that if the MRS is increasing in one good, then the other is normal Note that$(a_1,a_2)$is the utility maximizing bundle at relative price$MRS(a) = (= p_1/p_2)$and budget$w = MRS(a).a_1 + a_2$. First as$b$is utility maximising,$MRS(b) = \frac{p_1^0}{p_2^0}\$. ...
• 12.5k

Top 50 recent answers are included