“If you get no surplus from consumption, you have no incentive to work.”
If this statement were true, companies like Walmart, Apple and Amazon wouldn’t exist. No individual would have any incentive to create wealth beyond their subjective satisfaction or consumption utility.
I think my observation applies equally well to any productive individual, whether they be a business owner or employee. Human beings choose to produce or not for their own individual reasons—none of us is homo economicus .
Does your analysis/theorem depend on an assumption that each consumer will decide, according to what YOU call “rationally” ? Is it possible that a meaningful fraction of consumers might decide on some other basis ?
“If you get no surplus from consumption, you have no incentive to work.”
If this statement were true, companies like Walmart, Apple and Amazon wouldn’t exist. No individual would have any incentive to create wealth beyond their subjective satisfaction or consumption utility.
I think my observation applies equally well to any productive individual, whether they be a business owner or employee. Human beings choose to produce or not for their own individual reasons—none of us is homo economicus .
"We can then plot the inverse demand curve D"
Question: Is the PLOT of an inverse demand curve EVER different, in the slightest, from the plot of (the curve of) the original demand equation?
Does your analysis/theorem depend on an assumption that each consumer will decide, according to what YOU call “rationally” ? Is it possible that a meaningful fraction of consumers might decide on some other basis ?