Demand function- check solution

Posted by RichaS on Dec 03, 2016; 12:04pm
URL: http://discussion-forum.276.s1.nabble.com/Demand-function-check-solution-tp7602946.html

Suppose u(x; y; z;w) = xy + wz. Find the demand func-
tion for x.

Answer: maximum when x=y and w=z
             
Demand: x=m/px+py and y= m/px+py    if px+py<pw+pz
               w=m/pw+pz and z=m/pw+pz   if px+py>pw+pz
               anywhere on the budget line       if px+py=pw+pz