北京大学光华微观经济学ChapterConsumerBehavior.pptVIP

(2)Effects of p1 decrease from p1’ to p1” Original budget set x2 x1 m/p2 m/p1’ m/p1” New affordable choices Budget constraint pivots; slope flattens from -p1’/p2 to -p1”/p2 -p1’/p2 -p1”/p2 (2)Effects of p1 decrease from p1’ to p1” New, smaller budget set x2 x1 m/p2 m/p1’ m/p1” New affordable choices Budget constraint pivots; slope is steeper from -p1’/p2 to -p1”/p2 -p1’/p2 -p1”/p2 2.2.2 Application of Budget Constraint 1. Sales Taxes and budget constraint Proportional or ad valorem sales tax（从价税） Levied at proportional rate t Increa