Feasibility condition
Encyclopedia
The feasibility condition, along with the tangency condition, is used in microeconomics
to solve the consumer choice problem and obtain the demand function. It is formed by taking the equality of the budget line. The general form of the feasibility condition for two (dimensions of) goods is as follows:
x * px + y * py = I
where x and y are the quantities of the two goods, px and py are their respective prices, and I is the income of the consumer.
Microeconomics
Microeconomics is a branch of economics that studies the behavior of how the individual modern household and firms make decisions to allocate limited resources. Typically, it applies to markets where goods or services are being bought and sold...
to solve the consumer choice problem and obtain the demand function. It is formed by taking the equality of the budget line. The general form of the feasibility condition for two (dimensions of) goods is as follows:
x * px + y * py = I
where x and y are the quantities of the two goods, px and py are their respective prices, and I is the income of the consumer.