Thursday, January 29, 2009

Oh how I love the dismal science

"Jonathan Livingstone Yuppie is a prosperous lawyer. He has, in his own words, "outgrown those confining two-commodity limits." Jonathan consumes three goods: unblended Scotch whiskey, designer tennis shoes, and meals in French gourmet restaurants. The price of Jonathan's brand of whiskey is $20 per bottle, the price of designer tennis shoes is $80 per pair, and the price of gourmet restaurant meals is $50 per meal. After he has paid his taxes and alimony, Jonathan has $400 a week to spend."

such a vivid example from my problem set.

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