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Re: problem code : 090609MICRO

Posted by vishruti on Jun 10, 2009; 1:11pm
URL: http://discussion-forum.276.s1.nabble.com/problem-code-090609MICRO-tp3050024p3055498.html

when in kind subsidy is given then income increases to 30 because 4*2 + 0.5*4 = 10

and since it cannot be resold , we cannot consume at the optimum i .e . c = 3 and f = 6
becauce c>= 4 ( remember it cannot be resold) . hence c = 4 and substitute thin in 2c + 4 f = 30 this implies f = 5.5

hence c=4 f=5.5