Equation 3.A1 shows that a consumer’s income (I) can be spent either on goods X [(PX)(X)] or on good Y [(PY)(Y)]. For simplicity, we assume that all income is spent on the two goods
Equation 3.A1 shows that a consumer’s income (I) can be spent either on goods X[(PX)(X)] or on good Y [(PY)(Y)]. For simplicity, we assume that all income is spenton the two goods