Principles of Microeconomics
Consumer Theory: - It possible to describe the choices of consumers. Consumer can refer to a family or it can refer to the government of a country, too. He can choose form only 2 products: x and y. Products refer to a singe product or service that is consumed, a group products. X could represent consumer goods and y capital goods. Consumers have limited resources. They wish to have more of y and they give up some of x and vice versa.
Y = The total budget, y, has to be spent on the 2 products. (Budget = p * q).
Px and Py = the price of the products.
qx and qy…
