Re: Demand function

Posted by Asd1995 on Jun 14, 2017; 9:26am
URL: http://discussion-forum.276.s1.nabble.com/Demand-function-tp7605535p7605578.html

Write down the bordered Hessian for this. Its relatively simple, there are a lot of zeroes. This function obeys the conditions for quasi convexity. Hence the indifference curves are concave. Hence, we will have a boundary solution. Next part is easy. (My lagrangian was also giving me a minimum, not a maximum)