Economy, asked by aryakunnathparambil, 2 months ago

consider the utility function u=(x1...x) where xi=1,2,...,n are the quantities of the n goods cinsumed. Let the price of good xi be pi, i =1,2,...,n. Let m be the consumer's income. Show that Lagrangian multiplier of the utility maximization problem equals the marginal utility of income

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Answered by sonamsharmanamo

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known as the Lagrange Multiplier method. ... 2. Then follow the same steps as used in a regular maximization problem. ∂L. ∂x ... Suppose z = f(x, y) = xy. and the constraint is the one from above. ... Consider a consumer with the utility function U = xy, who faces a budget constraint of ... Let the consumer's utility function be.

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consider the utility function u=(x1...x) where xi=1,2,...,n are the quantities of the n goods cinsumed. Let the price of good xi be pi, i =1,2,...,n. Let m be the consumer's income. Show that Lagrangian multiplier of the utility maximization problem equals the marginal utility of income​

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consider the utility function u=(x1...x) where xi=1,2,...,n are the quantities of the n goods cinsumed. Let the price of good xi be pi, i =1,2,...,n. Let m be the consumer's income. Show that Lagrangian multiplier of the utility maximization problem equals the marginal utility of income