Composite good

In economics, a composite good is an abstraction that represents all but one of the goods in the relevant budget.

Consumer demand theory shows how the composite may be treated as if it were only a single good as to properties hypothesized about demand. The composite good represents what is given up along consumer's budget constraint to consume more of the first good.

This article is issued from Wikipedia. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.