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Income constraints - PowerPoint PPT Presentation

Objectives

Objectives. After reading this module, you should:. Be aware of the issue of resource scarcity; Understand the main factors leading to misestimating of environmental values; Familiarize with the methodological approaches to valuation of environmental goods and services.

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Chapter 2

Chapter 2. Consumers and Their Preferences. Unit of Analysis: Consumption Bundles. Good 2 ( x 2 ). b. 50. 25. a. 12. Good 1 ( x 1 ). 0. 20. 25. 50. The consumption possibility set. Assumptions on consumption possibility sets Divisibility Goods are infinitely divisible

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Income constraints - PowerPoint PPT Presentation

Objectives

Chapter 2