-
or that's what she does, that's what he does.
-
And now the fifth one
-
so now we have the two mysterious equations that are left.
-
So how do we express the idea
-
that the choices X_i and Y_i by i, that's her
-
and she's going to optimize by choosing here somewhere.
-
This is her indifference curve, right, looked like that.
-
So that's what she's going to do.
-
And remember he's going to choose here.
-
So how can you turn her choice and his choice into an equation?
-
Well, this was invented by a German guy Gossen in 1851
-
and then rediscovered by Jevons, Menger and Walras,