Individual Consumer Demand from xixj Space

As explained earlier, given https://www.w3.org/1998/Math/MathML"> a i p = a i c https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315501451/ae0497fb-cb00-48cd-b858-7e335a430669/content/math1448_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/> and given accurate estimates by producers of consumer M_i subbudgets and of consumer v_i and x_i neighborhoods, transactions between consumers and producers occur in v_ix_i space when https://www.w3.org/1998/Math/MathML"> b i c ≥ b i p https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315501451/ae0497fb-cb00-48cd-b858-7e335a430669/content/math1449_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/> and PDC ≥ CDC (see chapter 11). In v_ip_i space transactions occur along the PDPL (producer-determined price line) where PDPL ≤ CDPL (consumer-determined price line; see chapter 12). We now examine consumer-producer interaction in x_ixj consumption space. In this chapter we expand interaction to include both the ith and jth commodity producers. The consumer in x_ixj space continues, as before, to be a single consumer. As explained earlier, our individual consumer is not the statistical average consumer, nor that cohort of consumers otherwise known as the representative consumer.