Re: small doubt

Posted by Dreyfus on Jun 10, 2015; 5:26am
URL: http://discussion-forum.276.s1.nabble.com/small-doubt-tp7597552p7597597.html

the ICs of the given utility function are concave, and if you plot one its IC with y-intercept = (M/Py) then x-intercept of that IC has to be (4M^2/Py^2) and the slope of the line connecting these two points is (Py/4M). Now you can find the condition for different corner solutions.