Individual Consumer Demand from x i x j Space

Finally, it is useful to examine the concept of individual consumer demand for the ith commodity from the perspective of x _i x _j , space. As before, the level of quality of the ith commodity is assumed variable. The level of quality of the jth commodity is assumed constant. Likewise, the values of M _j and p _j are assumed constant. An illustration of x _i x _j space with variable quality for the ith commodity was provided in Figure 8.3 of chapter 8. In Figure 14.1 we have modified Figure 8.3 by rearranging the x _i and v _i axes, and by introducing the assumption that v _i has no effect on x _j . In Figure 14.1 the values of M _i , a _i , and b _i are assumed constant. Figure 14.1 Variable Quality in x_{<italic>i</italic>}x_{<italic>j</italic>} Space: Separability of v_{<italic>i</italic>} from x_{<italic>j</italic>} https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315501451/ae0497fb-cb00-48cd-b858-7e335a430669/content/fig14_1_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>