Ch2-Budget-Constraint-中级微观经济学.pptVIP

Shapes of Budget Constraints with a Quantity Discount m = $100 50 100 20 80 x2 x1 Budget Set Budget Constraint Shapes of Budget Constraints with a Quantity Penalty x2 x1 Budget Set Budget Constraint Shapes of Budget Constraints - One Price Negative Commodity 1 is stinky garbage. You are paid $2 per unit to accept it; i.e. p1 = - $2. p2 = $1. Income, other than from accepting commodity 1, is m = $10. Then the constraint is - 2x1 + x2 = 10 or x2 = 2x1 + 10. Shapes of Budget Constraints - One Price Negative 10 Budget constraint’s slope is -p1/p2 = -(-2)/1 = +2 x2 x1 x2 = 2x1 + 10 Shapes of Budget Constraints - One Price Negative 10 x2 x1 Budget set is all bundles for which x1 3 0,x2 3 0 and x2 ￡ 2x1 + 10. More General Choice Sets Choices are usually constrained by more than a budget; e.g. time constraints and other resources constraints. A bundle is available only if it meets every constraint. More General Choice Sets Food Other Stuff 10 At least 10 units of food must be eaten to survive More General Choice Sets Food Other Stuff 10 Budget Set Choice is also budgetconstrained. More General Choice Sets Food Other Stuff 10 Choice is further restricted by a time constraint. More General Choice Sets So what is the choice set? More General Choice Sets Food Other Stuff 10 More General Choice Sets Food Other Stuff 10 More General Choice Sets Food Other Stuff 10 The choice set is the intersection of all of the constraint sets. How do the budget set and budget constraint change as p1 decreases from p1’ to p1”? Original budget set x2 x1 m/p2 m/p1’ m/p1” -p1’/p2 How do the budget set and budget constraint change as p1 decreases from p1’ to p1”? Original budget set x2 x1 m/p2 m/p1’ m/p1” New affordable choices -p1’/p2 How do the budget set and budget constraint change as p1 decreases 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”