Cyclotron resonance: Difference between revisions

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A '''demand set''' is a model of the most-preferred bundle of goods an [[Agent (economics)|agent]] can afford. The set is a function of the [[preference relation]] for this agent, the prices of [[good (economics)|goods]], and the agent's [[Endowment (Economics)|endowment]].
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Assuming the agent cannot have a negative quantity of any good, the demand set can be characterized this way:
 
Define <math>L</math> as the number of goods the agent might receive an [[Asset allocation|allocation]] of. An allocation to the agent is an element of the space <math>R+l</math>; that is, the space of nonnegative real [[vector space|vectors]] of [[dimension]] <math>L</math>.
 
Define <math>>p</math> as a weak preference relation over goods; that is, <math>x>px'</math> states that the allocation vector <math>x</math> is weakly preferred to <math>x'</math>.
 
Let <math>e</math> be a vector representing the quantities of the agent's endowment of each possible good, and <math>p</math> be a vector of prices for those goods. Let <math>D(>p,p,e)</math> denote the demand set. Then:
D(>p,p,e) = {x: px <= pe and x >p x' for all affordable bundles x'.
 
==See also==
*[[Demand]]
*[[Economics]]
==External links==
*http://economics.about.com/library/glossary/bldef-demand-set.htm?terms=Demand+Set
 
[[Category:Consumer theory]]

Latest revision as of 16:18, 8 October 2014

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