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For Researchers · Consumer Choice

Consumer Choice for a tax policy

Built for researchers prototyping or validating an idea. Prototype fast, reproduce exactly, and share a citable, interactive version of your model. Simulate a tax policy live below — adjust the inputs and watch it respond, right in your browser.

Consumer ChoiceLive

indifference curves & budget

Controls

Presets

Preference for X (α)

Income

Price of X

Price of Y

A consumer maximizes utility subject to a budget. Indifference curves connect equally-satisfying bundles; the budget line shows what income affords. The best choice is where the budget line just touches the highest reachable indifference curve — the tangency where the marginal rate of substitution equals the price ratio. Change a price and watch the optimal bundle move.

▶ Run in Python

Data Inspector

Optimal X12.5

Optimal Y16.7

Utility14.4

Governing equation

U (x, y) = x^{0.5} y^{0.50}, 4 x + 3 y = 100, MRS = \frac{0.5}{0.50} \frac{y}{x}

Reading this result: With Cobb-Douglas preferences the optimal bundle spends a fixed income share on each good — here 50% of income (50) buys X and 50% buys Y, no matter how prices move; a price only changes how many units that fixed budget buys.

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Frequently asked questions

Is this good for researchers?: Yes — this version of "Consumer Choice for a tax policy" is framed for researchers prototyping or validating an idea. Prototype fast, reproduce exactly, and share a citable, interactive version of your model.
Do I need to install anything?: No. It runs in any modern browser, free, with no account required.