Re: isi 2006 me 2 DOUBT

Posted by Granpa Simpson on May 09, 2014; 5:09pm
URL: http://discussion-forum.276.s1.nabble.com/isi-2006-me-2-DOUBT-tp7540568p7589214.html

He cannot choose any point where s not equal to a*x because for any x he will have to necessarily consume a*x amount of smoke..so any point where s not equal to a*x does not come under his budget constraints..because budget constraint gives the combination of goods that he can consume given his money income..in this case he cannot consume any bundle where s not equal to a*x, so they do not come under the budget set given his money income and has to excluded from the set.