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Crampton/Hickson Budget Line

October 19, 2008

This cake/graph shows the budget line for consumption of goods Crampton (on the y axis) and Hickson (on the x axis). The green curve shows where the consumer is indifferent between all points on the curve. The point where the curve intersects the budget line is the point of optimal consumption.

Or, for those of you not familiar with economics-speak, this is a graph most economists would be familiar with. Eric Crampton is the lecturer for an economics paper I took this semester, and Stephen Hickson is my tutor for the same course. Hamish and Craig also took a paper taught by Crampton, and we presented this cake to the two of them on Friday afternoon… Hopefully they enjoyed eating it as much as they appeared to enjoy discussing who is consumed more at the optimal point!

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2 comments

  1. Very nice. I would have drawn the indifference curve a bit differently, of course, with it asymptoting to a line slightly below Qc and to a vertical line close to the y-axis. Hickson, presumably, would disagree.


  2. Thanks for the information…I bookmarked your site, and I appreciate your time and effort to make your blog a success!



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