Problem Code: 250609MICRO

[Amit Goyal]

Suppose U = square(X) + 2square(Y) is the utility function
AND
p(x) = 1 p(y) = 2 M = 2
The optimal consumption bundle(s) is(are) given by ......?

[duck]

is it (1/3 , 1/6)?

[Amit Goyal]

I recommend first check for the quasi-concavity of the utility function. And then look for the solution.
Here the optimal bundle is x = 2, y = 0

[duck]

ok sir.. :)

[Amit Goyal]

Suppose U = square(X) + 2square(Y) is the utility function
AND
p(x) = 1
p(y) = 2
M = 2
The optimal consumption bundle(s) is(are) given by (2, 0)

[duck]

got the answer (2,0) :)
 
but i hav a doubt..when i solved the ques by drawing IC then i got this answer while when i solved it mathematically then (2/3 , 2/3) came..i guess i made some error while calculating it mathematically...

Thankyou Sir
..

[Amit Goyal]

Check for the second order condition for profit maximization Nidhi and you will know the mistake.
Now Figure out the demand function for consumer with utility function, U = square(X) + 2square(Y)
p(x) > 0
p(y) > 0
M > 0

[duck]

yes got the thing..

Thank you sir
...

[PRANAV JAIN]

I GUESS ONLY SUPER GENIUS GUYS CAN STAY HERE AND ANSWER YOU...I THINK I AM NOT UPTO THAT LEVEL...ITS BEING THE SORRY STATE BUT I DONT KNOW WAT TO DO...BLANK MIND...TENSED REGARDING THIS...NEEDS A LOT OF MOTIVATION...

[duck]

Hi Pranav,
please yaar dont think in this way..we both are going through the same situation..
just think you are no less than anyone..just cheer up n do hardwork sincerely..
n yes dont think abt the result..just give your bestest!!!
tc..

:)

...

[PBANSAL]

I got the part that utility function is not satisfying dmu, but i am still not getting 2,0 as the optimal bundle.how do we get it?

[duck]

Hi.. :)

IC's are concave. So, only corner solution possible. Now,check the price ratio to see which good will be zero.

[PBANSAL]

thanks duck:), i got it silly error on my part.