I have two questions, but maybe it is just lack of clearness inside my mind.
First, what is the difference between the price-consumption curve (that we have seen on earlier microeconomics curses) and the “offer” curve? For me, they are the same. But I don’t know if the difference just is that the offer curve is a concept of general equilibrium theory, and the price-consumption curve is related to partial equilibrium topics and consumer’s choice.
Second, on page 8 (Lectures Notes) we assume that i) agents do not directly care about prices because there’s no prices in the utility functions, and ii) agents do not care about prices indirectly because prices do not convey information about the quality of goods. But my question is, why can we assume that prices do not matter on consumer’s choice, at the same time the assume that prices clear the market? It is because is this an exchange economy with no production?
Waiting for any reply,