微观经济学讲义(黄有光)4.docVIP

Advanced Microeconomics Topic 3: Consumer Demand Primary Readings: DL – Chapter 5; JR - Chapter 3; Varian, Chapters 7-9. 3.1 Marshallian Demand Functions Let X be the consumers consumption set and assume that the X = Rm+. For a given price vector p of commodities and the level of income y, the consumer tries to solve the following problem: max u(x) subject to p(x = y x ( X The function x(p, y) that solves the above problem is called the consumers demand function. It is also referred as the Marshallian demand function. Other commonly known names include Walrasian demand cor