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Progresso di Studio
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Taught in English
Questo esame si sostiene in inglese: le lezioni e le domande sono in inglese. L'interfaccia resta in italiano.
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Key formulas
Marginal Rate of Substitution
Rate at which the consumer is willing to exchange good 2 for good 1, holding utility constant.
Tangency Condition
Equivalently: MU₁/p₁ = MU₂/p₂ — equal marginal utility per euro spent.
Part 1 of 1
The consumer picks the bundle (x₁, x₂) that maximises utility, given a budget:
This is exactly the Lagrange problem from the math section. The budget line is the constraint — it shows every affordable combination. The consumer wants the highest indifference curve that still touches it.
Worked example
p_x=€2, p_y=€4, income I=€80. Budget line: 2x + 4y = 80. Feasible points include (40,0), (0,20), (20,10). The optimum is the point where the indifference curve touches the budget line from outside.
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