Editing Isovalue lines

In [[microeconomics]], in a standard trade model with two products, an '''isovalue line''' is the vector of combinations for which the [[market value]] of total production is constant.<ref>{{Cite web |last=Fernández |first=Èric Roca |date=2019-07-11 |title=The Standard Trade Model |url=https://eric-roca.github.io/courses/international_trade/standard_trade_model/ |access-date=2024-11-27 |website=Èric Roca Fernández |language=en-us}}</ref><ref>{{Cite web |title=Econ 325 - The Standard Trade Model |url=http://qed.econ.queensu.ca/pub/faculty/lewb/325_LecStandard.html |access-date=2024-11-27 |website=qed.econ.queensu.ca}}</ref> The formula for isovalue line V is:

<math>V=QxPx+QyPy</math>

in which:

Q is quantity

P is price

x and y are products.

For example: Assume an economy that only produces bread and wine and in which relative prices are fixed, say one bottle of wine equals the price of three breads. The isovalue line V (in a graph with bread as ''x'' and wine as ''y'') slopes less than 45° downward. The exact slope is derived from the wine/bread price relation, in this case -1/3.
==References==
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{{DEFAULTSORT:Isovalue Lines}}
[[Category:Microeconomics]]


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