Description
numeraireResidual = budget-price*chosenQuantity.
A budget constraint links prices, quantities and a monetary resource. An axis intercept, residual or local share contribution describes one aspect of that constraint and does not independently solve preferences or determine actual affordability.
numeraireResidual = budget-price*chosenQuantity.
When to use this tool
Use Quasilinear Demand Budget Residual when checking one supplied basket, budget-line or resource-allocation term.
How to use the tool and how it works
- Enter budget, price, chosenQuantity. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read numeraireResidual. Use the output convention below.
Require nonnegative price and chosenQuantity. numeraireResidual = budget-price*chosenQuantity.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| budget | Budget | Required. Finite number. |
| price | Price | Required. Finite number; minimum 0. |
| chosenQuantity | Chosen Quantity | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| numeraireResidual | Numeraire Residual | Required. Finite number. |
{
"input": {
"budget": 100,
"price": 4,
"chosenQuantity": 12
},
"output": {
"numeraireResidual": 52
}
}Limitations and assumptions
- Use price currency per quantity unit and budget in that currency. Negative residuals are returned; this is one quasilinear budget term, not an optimal demand or feasibility judgment.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use the complete feasible set and an appropriate choice model for optimization, rationing or welfare questions.
References
Similar or alternative tools
- Quantity Rationing Unmet Demand Term
unmet = max(0,demand-allocation); excessAllocation = max(0,allocation-demand).
- Economics: Utility Budget Feasibility Basket
expenditure = sum(quantity*price); feasible uses expenditure <= budget; remainingBudget = budget-expenditure.