Let's consider first a simple model for apartments in a college. Here we are interested to predict the prices of the rooms, and how we can allocate them to students. For simplicity, we will assume that they are all equal except for the location, which could be inner or outer.…
Here we analyze how demand changes when prices and income changes. Types of Goods # Here we will define two main types of Goods: Normal Goods : The demand increases linearly with the income. Inferior or Ordinary Goods : The demand decreases when the income is higher, one example…
Budget # A definition for Budget # Economist want simple models to start to model things. One of the things we will model here is how do you describe what you can afford about some goods. Budget Set # The easy way is to define a vector space of possible goods X , where its…