{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Final_slides

# Final_slides - Final Exam Review for Intermediate...

This preview shows pages 1–7. Sign up to view the full content.

Final Exam Review for Intermediate Microeconomics Econ 100A (UCSC) March 2009 Econ 100A (UCSC) Optimization Theory 03/09 1 / 11

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Consumer Theory We have a utility function: U = x 3 4 y 1 4 We have our budget constraint: m = p x x + p y y How do we solve the optimization problem? Econ 100A (UCSC) Optimization Theory 03/09 2 / 11
Consumer Theory We have a utility function: U = x 3 4 y 1 4 We have our budget constraint: m = p x x + p y y How do we solve the optimization problem? Find the marginal utilities subject to x and y . Econ 100A (UCSC) Optimization Theory 03/09 2 / 11

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Consumer Theory We have a utility function: U = x 3 4 y 1 4 We have our budget constraint: m = p x x + p y y How do we solve the optimization problem? Find the marginal utilities subject to x and y . Plug them into the MRS: MRS = ° MU x MU y = ° U / x U / y Econ 100A (UCSC) Optimization Theory 03/09 2 / 11
Consumer Theory We have a utility function: U = x 3 4 y 1 4 We have our budget constraint: m = p x x + p y y How do we solve the optimization problem? Find the marginal utilities subject to x and y . Plug them into the MRS: MRS = ° MU x MU y = ° U / x U / y Equate MRS with the slope of the budget line: Econ 100A (UCSC) Optimization Theory 03/09 2 / 11

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Consumer Theory We have a utility function: U = x 3 4 y 1 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 17

Final_slides - Final Exam Review for Intermediate...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online