DSE 2009 41

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DSE 2009 41

xyz123
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
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Re: DSE 2009 41

Dreyfus
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!
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Re: DSE 2009 41

xyz123
Ok ya okay! Thanks :)
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Re: DSE 2009 41

mrittik
In reply to this post by xyz123
are man this is a concave function.....this ans shld be a