Demand Theory: Constraints and Optimization

  • Michael R. Hammock
  • J. Wilson Mixon


This chapter introduces the budget constraint and combines the budget constraint with the preferences developed in the preceding chapter to provide a model of rational consumer choice.


Utility Function Lagrangian Multiplier Budget Constraint Marginal Utility Utility Level 
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Copyright information

© Springer Science+Business Media, LLC 2013

Authors and Affiliations

  • Michael R. Hammock
    • 1
  • J. Wilson Mixon
    • 2
  1. 1.Department of Economics and FinanceMiddle Tennessee State UniversityMurfreesboroUSA
  2. 2.Berry CollegeMount BerryUSA

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