Principles of Microeconomics

Principles of Microeconomics Consumer Theory: - It possible to describe the choices of consumers. Consumer can refer to a family or it can refer to the government of a country, too. He can choose form only 2 products: x and y. Products refer to a singe product or service that is consumed, a group products. X could represent consumer goods and y capital goods. Consumers have limited resources. They wish to have more of y and …

…good. (Coke & Pepsi). <Tab/>1 < Cε < ∞ (Cε is positive)  products are substitutes. (different clothes). <Tab/>Cε < 0 (Cε is negative)  Complements products, have to be consumed together. (CD player & CD). <Tab/>products perfect complements Cε approaches - ∞. (left & right shoe).