北大微观经济学课件(英文版)ch2 Budget Constraint(精品·公开课件).pptVIP

中级微观经济学 Chapter Two Budget Constraint 预算约束 Structure Describe budget constraint Algebra Graph Describe changes in budget constraint Government programs and budget constraints Non-linear budget lines Consumption Sets A consumption set （消费集）is the collection of all physically possible consumption bundles （消费束）to the consumer. Consumption Bundle A consumption bundle containing x1 units of commodity 1, x2 units of commodity 2 and so on up to xn units of commodity n is denoted by the vector (x1, x2, … , xn). Physical Constraints Non-negative: Consumption set: X={ (x1, … , xn) | x1 3 0, … , xn 3 0 } You only have 24 hours a day Subsistence need Etc. Budget Constraint What constrains consumption choice? Budgetary time other resource limitations. Budget Constraints Commodity prices are p1, p2, … , pn. Q: When is a bundle (x1, … , xn) affordable at prices p1, … , pn? A: When p1x1 + … + pnxn ￡ mwhere m is the consumer’s (disposable) income. Budget Constraints The bundles that are only just affordable form the consumer’s budget constraint. This is the set{ (x1,…,xn) | x1 3 0, …, xn 3 0 and  p1x1 + … + pnxn = m }. Budget Constraints The consumer’s budget set （预算集）is the set of all affordable bundles;B(p1, … , pn, m) ={ (x1, … , xn) | x1 3 0, … , xn 3 0 and p1x1 + … + pnxn ￡ m } The budget constraint is the upper boundary of the budget set. Budget Set and Constraint for Two Commodities Budget Set and Constraint for Two Commodities Budget Set and Constraint for Two Commodities Budget Set and Constraint for Two Commodities Budget Set and Constraint for Two Commodities Budget Set and Constraint for Two Commodities Budget Set and Constraint for Two Commodities Meaning of the Slope  Increasing x1 by 1 must reduce x2 by p1/p2. Opportunity cost of consuming x1 Or, the rate of exchange that market allows. Budget Constraints Budget Constraints Budget Constraints Budget Sets Constraints; Income and Price Changes Th