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DSE 2009 Simple Maximization Question
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ElPsyCongroo
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Jun 23, 2017; 10:43am
DSE 2009 Simple Maximization Question
131 posts
Isn't x=1 y=0 a unique solution for this?
Answer is no solution as per Amit sir's key
http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/dse2009_ans.pdf
vishp
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Jun 23, 2017; 10:54am
Re: DSE 2009 Simple Maximization Question
48 posts
Using Lagrangin optimization method,
L=x^2-y^2+p(1-x-y)
dL/dx=2x-p=0....(1)
dL/dy=-2y-p=0.... (2)
dL/dp=1-x-y=0....(3)
(1)/(2) gives, -x=y. put this value in (3), you will get 1=0.. this is not possible at all.. so answer is no solution.
ElPsyCongroo
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Jun 23, 2017; 11:35am
Re: DSE 2009 Simple Maximization Question
131 posts
https://www.desmos.com/calculator/ax6ktngcae
I completely overlooked the fact that x and y belong to real numbers, not just positive real numbers, woops. I see now.
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