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Demand Theory: Constraints and Optimization

  • Michael R. Hammock
  • J. Wilson Mixon
Chapter

Abstract

This chapter introduces the budget constraint and combines the budget constraint with the preferences developed in the preceding chapter to provide a model of rational consumer choice.

Keywords

Utility Function Lagrangian Multiplier Budget Constraint Marginal Utility Utility Level 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. 1.
    Baldani J, Bradfield J, Turner RW (1996) Mathematical economics. Dryden, Fort WorthGoogle Scholar
  2. 2.
    Doi J, Iwasa K, Shimomura K (2009) Giffen behavior independent of the wealth level. Econ Theory 41:247–267CrossRefGoogle Scholar
  3. 3.
    Nicholson W, Snyder C (2008) Microeconomic theory: basic principles and extensions, 11th edn. South-Western, MasonGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2013

Authors and Affiliations

  • Michael R. Hammock
    • 1
  • J. Wilson Mixon
    • 2
  1. 1.Department of Economics and FinanceMiddle Tennessee State UniversityMurfreesboroUSA
  2. 2.Berry CollegeMount BerryUSA

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