IDEAL BASKET

The ideal basket of consumption is the one which gives the most usefulness between the all basket that we can get.

How much must to buy a consumer to get the ideal point?

For this we must have in account the income of the consumer and the usefulness between the goods.

To maximize the all satisfaction of the consumer must give two conditions.

1ª  The consumer has to spend all his income

M = Px · X + Py · Y

2ª The consumer has to maximize his total usefulness, and for this is necessary calculate the marginal usefulness of each good and the marginal usefulness between each good and the prices of each good.

RMSxy = Px/Py

The demand function is which relates the ideal basket with the prices and the income, and depending of the function we could have three different ideal baskets.

-Perfect substitute when the good can be consumed in the place of the other, because both give us the same level of usefulness, and where RMS = -a/b and the hanging straight line RP = -px/py = -a/b, all the baskets in the hanging straight line give the same satisfaction.

- Preferences reheadscarfs where the consumption has to be 
  m/Py = m/Px.

- And the last complementary perfect where both goods are        consumed together in proportion and where the ideal basket is 
 Y = (a/b) X

Ideal basket :

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