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:
“Our condition as men is risky and ticklish enough. One can not be sure of himself and his fortune an hour, but he may be whisked off into some pitiable or ridiculous plight.”
—Ralph Waldo Emerson (1803–1882)