Within

economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analy ...

, the feasibility condition, along with the

tangency In geometry, the tangent line (or simply tangent) to a plane curve at a given point is the straight line that "just touches" the curve at that point. Leibniz defined it as the line through a pair of infinitely close points on the curve. More ...

condition, is used in microeconomics to solve the

consumer choice The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their pre ...

problem and obtain the

demand function In economics, a demand curve is a graph depicting the relationship between the price of a certain commodity (the ''y''-axis) and the quantity of that commodity that is demanded at that price (the ''x''-axis). Demand curves can be used either for t ...

. The condition states that total spending on all goods cannot exceed available income. The general form of the feasibility condition for two goods is as follows: :

xp_x+yp_y \leq I

, where ''x'' and ''y'' are the quantities consumed of the two goods, ''p_x'' and ''p_y'' are their respective prices, and ''I'' is the income of the consumer.

References

Consumer theory {{microeconomics-stub