Hi list,
Perhaps everyone (especially Dr. Fateman, whose prompt reply I very
much appreciate) will forgive me if I ask for a more elementary
answer.
Here is a rather simple example:
Optimize: u(x,y):= (x^a) * (y^(1-a));
Subject to: c(x,y) := px * x + py * y, where c(x,y) =I. ( I for income)
Could someone explain how to get from the above two definitions to a
description of the optimums in terms of px and py (see below),
including any load statements and the exact call to an optimization
routine. An example result:
xopt(px, py) := a * px * I; (or whatever it is for the Cobb Douglas
utility function)
Thx
W