Utility maximization problem: Difference between revisions

Revision as of 18:47, 15 December 2008

Revision as of 19:07, 18 February 2009

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==Basic setup==

Suppose their [[consumption set]], or the enumeration of all possible consumption bundles that could be selected if there are no budget constraintconstraints has ''L'' commodities and is limited to positive amounts of consumption of each

:<math>x \in \textbf R^L_+ \ .</math>

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=== non unique solution ===

The solution ''x''(''p'', ''w'') need not be unique. If a consumer always picks an optimal package as defined above, then ''x''(''p'', ''w'') is called the [[Marshallian demand correspondence]].

==See also==