1 Strong Induction Recall the principle of strong induction: Principle of Strong Induction. Let(n) be a predicate. If ·P() is true,and for all n, P(O)A P(1)...A P(n) implies P(n+1), then P() is true for all n E N. As an example, let's derive the fundamental theorem of arithmetic
Properties of Demand Functions Comparative statics analysis(比较 静态分析) of ordinary demand functions the study of how ordinary demands *(p,P2,y) and x2*(p1,P2,y) change as prices p1, P2 and income y change
Equilibrium price. Equilibrium allocation: x=xi(p,p·w2), Note: A p* for any >0 is also an equilibrium price. Offer curve: (p)(p, p. w;). The equilibrium is the intersection point of the offer curves. Excess demand function: