微观经济学7_8.docVIP

7 CONSUMER’S SURPLUS Demand for a Discrete Good The utility function: v(x) + y. x-good: only available in integer amounts y-good: money to be spent on other goods. If n units of the discrete good are demanded, then rn≥p≥rn+1. price r1 r p r4 1 2 3 4 5 quantity Constructing Utility from Demand Suppose that we know a consumer’s demand for a discrete good: r1 r2 r3 … price r1 r p r4 1 2 3 4 5 quantity Let v(1) = r1, v(2) = r1 + r2, v(3) =