Total expenditure

Summary

Total expenditure

  • Cost of bundle (x1,x2) : p1x1+p2x2
  • TE(x1,x2)=p1x1+p2x2 (for total expenditure)
  • Example:
    • p1=2 and p2=3
    • TE(x1,x2)=2x1+3x2