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Mr Banda is consuming products A and B optimally and deriving total utility of 10 utiles. When his budget is increased from K80 to K81, his utility increases from 10 utiles to 10.1 utiles. a) What is the marginal utility of X at the optimum when the price of X is K20? b) What is the price of Y when the marginal utility of Y is 4 utiles? c) Compute the Lagrange multiplier d) What is the utility when the budget is reduced from K80 to K79?

Mr Banda is consuming products A and B optimally and deriving total utility of 10 utiles. When his budget is increased from K80 to K81, his utility increases from 10 utiles to 10.1 utiles. a) What is the marginal utility of X at the optimum when the price of X is K20? b) What is the price of Y when the marginal utility of Y is 4 utiles? c) Compute the Lagrange multiplier d) What is the utility when the budget is reduced from K80 to K79?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Mr Banda is consuming products A and B optimally and deriving total utility of 10 utiles. When his budget is increased from K80 to K81, his utility increases from 10 utiles to 10.1 utiles. a) What is the marginal utility of X at the optimum when the price of X is K20? b) What is the price of Y when the marginal utility of Y is 4 utiles? c) Compute the Lagrange multiplier d) What is the utility when the budget is reduced from K80 to K79?
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