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2006-11-19

Consumer purchase food to consume but food creates garbage. No consumers acquire garbage directly. Consider how this factor influence the quantity of goods purchased and consumed.

A consumer has a budget, B which is used to purchase food, F and other goods, Y. The price of food is Pf and price of goods is Py.

This consumer’s utility function is given by:

U=U (f,g,y)

Where g is the garbage produced as food is aquired and consumed. While f and y contribute positively to utility, not so of garbage which provides disutility to the consumer.

One pound of food produces one-half pound of garbage, so that:

g=f/2

a. Draw an indifference curve between g and y. How would this curve be used to define a position of consumer equilibrium, if ever?

b. With free garbage disposal, define the point of consumer equilibrium which determine the quantity of food which is purchased.

后面还有还好几问,请教大家怎么画这个图,或是介绍一些资料给我参考以下阿,谢谢啦

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2006-11-19 08:36:00

范里安书上自己去看看

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