A consumption vector of three goods is defined by x x1 x2


Question: A consumption vector of three goods is defined by x = (x1, x2, x3), where x1, x2 and x3 are the quantities consumed of the three goods. A budget constraint is represented by the equation p·x = k, where p is the price vector of the three goods and k is a constant. Show that the difference between two consumption vectors corresponding to points satisfying the same budget constraint is perpendicular to the price vector p.

Solution Preview :

Prepared by a verified Expert
Mathematics: A consumption vector of three goods is defined by x x1 x2
Reference No:- TGS02409574

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)