Re: Question from MSQE 2011

Posted by Zen on Apr 01, 2015; 5:52pm
URL: http://discussion-forum.276.s1.nabble.com/Question-from-MSQE-2011-tp7595743p7596039.html

I am also stuck in this. I have found the first two answers, but I need some help in the explanation. Can anyone check if the answers are correct and provide the required explanation?
Plan A: For each consumer: x=M/(2*price of x), y=M/(2*price of y).
Plan B: For each consumer: x=2M/(3*price of x), y=M/(3*price of y).
I cannot explain the difference. I just used Lagrange multiplier method.