Login  Register

ISI Consumer Theory 2010 Sample Paper

classic Classic list List threaded Threaded
2 messages Options Options
Embed post
Permalink
Reply | Threaded
Open this post in threaded view
| More
Print post
Permalink

ISI Consumer Theory 2010 Sample Paper

TheFlash
52 posts
I am confused about the approach to the B part of Q9 of ISI sample paper 2010. Please help. Thanks.

Reply | Threaded
Open this post in threaded view
| More
Print post
Permalink

Re: ISI Consumer Theory 2010 Sample Paper

Asd1995
286 posts
If (x1,x2) is a solution then so is (x2,x1) as both utility and budget constraint are symmetric in x1,x2 (hence, lagrangian optimisation conditions give you that all critical points are symmetric) so maximum will also be symmetric.

If it is unique then only possibility is x1=x2