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.
Famous quotes containing the word condition:
“The condition of perfection is idleness: the aim of perfection is youth.”
—Oscar Wilde (1854–1900)