Chúng tôi sẽ . thứ hai là cách tiếp cận này có lợi thế đặc biệt khi chúng tôi đến với mô hình hệ thống kinh tế như một toàn thể. Mô hình kinh tế vi mô cơ bản của rm . có thể được xây dựng nghiêm ngặt và informatively với thành phần chứ không phải ít. | 110 CHAPTER 5. THE CONSUMER AND THE MARKET Figure Consumption in the household-production model j 1 is wjb2j i - wj 1b2j 22 Wjbij 1 - Wj ibij . We can think of this as ratio of notional prices p1 p2. So it is clear that a simple increase in the budget y from a larger resource endowment just inflates the attainable set - look at the way each vertex changes with y - without altering the relative slopes of different parts of the frontier . However changes in input prices or productivities will change the shape of the frontier. As illustrated the household would consume at x using a combination of input market good 4 and input 5 to provide itself with output goods 1 and 2. The household does not bother buying market good 3 because its market price is too high. Now suppose something happens to reduce the price of market good 3 - W3 falls in and . Clearly the frontier is deformed by this - vertex 3 is shifted out along the ray through 0. Assume that R3 0 then if the price of market good 3 falls only a little nothing happens to the household s equilibrium 10 the new frontier shifts slightly outwards at vertex 3 and the household carries on consuming at x . But suppose the price W3 falls a lot so that the vertex moves out as shown in in Figure . Note that techniques 4 and 5 have now both dropped out of consideration altogether and lie inside the new frontier. Market good 3 has become so cheap as to render them inefficient the consumer uses a combination of the now inexpensive market good 3 and 10 How would this behaviour change if R3 0 . HOUSEHOLD PRODUCTION 111 Figure Market price change causes a switch market good 6 in order to produce the desired consumption goods that yield utility directly. The household s new consumption point is at x . The fact that some commodities are purchased by households not for direct consumption but as inputs to produce other goods within the household enables us to understand a number of phenomena that are
