小菜2009 发表于 2010-12-5 16:52
1# Skcny
闲暇轴是一，你是对的，what you have is the total time which is normalized as 1, we should treat it as your endowment.  your wealth is the total income which is equal to 1 timing w, that is w. we can also normalize the consumption's price as 1, because the absolute quantity you can consume doesn't matter.
and it's important to tell that the leisure's price is w.(the key point here.)
let the leisure time be good 1, the consumption be good 2. the relative price is w.  so the largest quantity of consumption  is w. So the budget set is there with -w as the slope.

the income is w. good 1's price is 1, and good 2's price is w. suppose we have the normal preference type which can be represented by u=X1X2. we are done.

i am not zhuang B here, my keyboard is out of control. Sorry for my pool English, but my answer is right.