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DSE 2009 41
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xyz123
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DSE 2009 41
Can somebody please explain me why is the answer (a)? My answer is coming to be (d)
Can't we solve the given utility function through Lagrange?
Series of the question paper is 1
Thanks
Dreyfus
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Re: DSE 2009 41
The given utility function represents concave preferences as it is exponentially transformed version of x²+y² nd has Slope = -x/y nd is increasing in x! Therefore the optimum consumption is to consume the least expensive good ie dosa!
xyz123
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Re: DSE 2009 41
Ok ya okay! Thanks :)
mrittik
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Re: DSE 2009 41
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by xyz123
are man this is a concave function.....this ans shld be a
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