<p>The meaning is same as in mathematics.</p>
<p>Indeed price vector <span class="math-container">$\mathbf{p}$</span> is just:</p>
<p><span class="math-container">$$\mathbf{p} = (p_1,p_2, ... , p_n)$$</span></p>

CC BY-SA 4.0
2022-05-07T08:06:48.187Z
Just to add onto this, vectors in economics are often column vectors by default. Thus it would be standard to write $p_i'x_i$ to denote the dot product of the two vectors representing total expenditures.
Michael Gmeiner
CC BY-SA 4.0
2022-05-06T20:17:26.993Z
2022-05-06T20:17:26.993Z
1muflon1
<p>So what does a vector mean in economics, in layman's terms?
For example,
<a href="https://en.wikipedia.org/wiki/Hicksian_demand_function" rel="nofollow noreferrer">https://en.wikipedia.org/wiki/Hicksian_demand_function</a></p>
<blockquote>
<p>where <span class="math-container">$h(p,\bar{u})$</span> is the Hicksian demand function, or commodity bundle demanded, at price vector p and utility level
<span class="math-container">$\bar{u}$</span>. Here p is a vector of prices, and x is a vector of quantities demanded, so the sum of all <span class="math-container">$p_ix_i$</span> is total expenditure on all goods.</p>
</blockquote>
<p>Is a price vector here just a bundle of prices <span class="math-container">$(p_1, p_2, ..., p_n)$</span> that verifies vector space properties?</p>

<microeconomics><price>
Vector meaning within economics
Guiw4cLDXt
# Vector meaning within economics

(Asked by: username_0 on 2022-05-06)

So what does a vector mean in economics, in layman's terms?
For example,
<https://en.wikipedia.org/wiki/Hicksian_demand_function>

> where $h(p,\bar{u})$ is the Hicksian demand function, or commodity bundle demanded, at price vector p and utility level
> $\bar{u}$. Here p is a vector of prices, and x is a vector of quantities demanded, so the sum of all $p\_ix\_i$ is total expenditure on all goods.

Is a price vector here just a bundle of prices $(p\_1, p\_2, ..., p\_n)$ that verifies vector space properties?

**Tags:** microeconomics, price


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## 1 answers

### Answer by username_1 on 2022-05-06. Score: 4

The meaning is same as in mathematics.

Indeed price vector $\mathbf{p}$ is just:

$$\mathbf{p} = (p\_1,p\_2, ... , p\_n)$$

> **Comments:**
> **username_2**: Just to add onto this, vectors in economics are often column vectors by default. Thus it would be standard to write $p_i'x_i$ to denote the dot product of the two vectors representing total expenditures.  

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