Course: Microeconomic - Consumer Theory Explain in detail and model theoretically (be clear about it) establishing the assumptions considered necessary. Considering an individual who will choose 2 goods (X1 and X2) perfect substitutes: (a) How the individual analyzes his preferences and economic constraints (include the respective slopes in the analysis). b) How the individual constructs his demand function. Derive graphically and analyze the individual's demand for a rise in the price of good X1. Attach in each case the respective graphs.
Course: Microeconomic - Consumer Theory Explain in detail and model theoretically (be clear about it) establishing the assumptions considered necessary. Considering an individual who will choose 2 goods (X1 and X2) perfect substitutes: (a) How the individual analyzes his preferences and economic constraints (include the respective slopes in the analysis). b) How the individual constructs his demand function. Derive graphically and analyze the individual's demand for a rise in the price of good X1. Attach in each case the respective graphs.
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.12P
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Explain in detail and model theoretically (be clear about it) establishing the assumptions considered necessary.
Considering an individual who will choose 2 goods (X1 and X2) perfect substitutes:
(a) How the individual analyzes his preferences and economic constraints (include the respective slopes in the analysis).
b) How the individual constructs his demand function. Derive graphically and analyze the individual's demand for a rise in the
Attach in each case the respective graphs.
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