module_3.py

Created on December 03, 2025

324 Bytes

 Consumers maximize utility under a budget constraint.
• Budget line: PxX + PyY = I
• Indifference curve = combinations with equal satisfaction.
• MRS = MUx / MUy → slope of indifference curve.
• Optimum: MRS = Px / Py (tangency point).
• Perfect substitutes → straight IC; Perfect complements → L-shaped IC.

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