nicholson微观经济理论（答案+PPT+习题库）-ch06.pptVIP

Chapter 6 DEMAND RELATIONSHIPS AMONG GOODS The Two-Good Case The types of relationships that can occur when there are only two goods are limited But this case can be illustrated with two-dimensional graphs Gross Complements Gross Substitutes A Mathematical Treatment The change in x caused by changes in py can be shown by a Slutsky-type equation Substitutes and Complements For the case of many goods, we can generalize the Slutsky analysis Substitutes and Complements Two goods are substitutes if one good may replace the other in use examples: tea coffee, butter margarine Two goods are complements if they are used together examples: coffee cream, fish chips Gross Substitutes and Complements The concepts of gross substitutes and complements include both substitution and income effects two goods are gross substitutes if ?xi /?pj 0 two goods are gross complements if ?xi /?pj 0 Asymmetry of the Gross Definitions One undesirable characteristic of the gross definitions of substitutes and complements is that they are not symmetric It is possible for x1 to be a substitute for x2 and at the same time for x2 to be a complement of x1 Asymmetry of the Gross Definitions Suppose that the utility function for two goods is given by U(x,y) = ln x + y Setting up the Lagrangian L = ln x + y + ?(I – pxx – pyy) Asymmetry of the Gross Definitions gives us the following first-order conditions: ?L/?x = 1/x - ?px = 0 ?L/?y = 1 - ?py = 0 ?L/?? = I - pxx - pyy = 0 Manipulating the first two equations, we get pxx = py Asymmetry of the Gross Definitions Inserting this into the budget constraint, we can find the Marshallian demand for y pyy = I – py an increase in py causes a decline in spending on y since px and I are unchanged, spending on x must rise (? x and y are gross substitutes) but spending on y is independent of px (? x and y are independent of one another) Net Substitutes and Complements The concepts of net substitutes and complements focuses solely on substitution effects two