Requires a Wolfram Notebook System
Interact on desktop, mobile and cloud with the free Wolfram Player or other Wolfram Language products.
The upper plot represents, in black, the combination of goods that a consumer can purchase with the budget constraint and, in grey, the consumer's indifference map. You can choose three possible utility functions: Cobb–Douglas, perfect complements, and perfect substitutes. The consumption choice is highlighted in red; it represents the combination of goods that the consumer decides to buy.[more]
The graph below shows, for each price, the amount purchased of good one, while holding the consumer's preferences, budget, and the other good price constant.[less]
Contributed by: Loreto Llorente (March 2011)
Open content licensed under CC BY-NC-SA
Wolfram Demonstrations Project
Published: March 7 2011