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Sensitivity Analysis between Lagrange Multipliers and Consumer Budget: Utility Maximization Case

Devajit Mohajan and Haradhan Mohajan
Authors registered in the RePEc Author Service: Dr Haradhan Kumar Mohajan ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper sensitivity analysis between Lagrange multipliers and total budget is discussed. The method of Lagrange multipliers is a very useful and powerful technique in multivariable calculus. In mathematical economics, utility is the vital concept that increases or decreases overall happiness of the consumers. This study tries to discuss utility maximization policy of an organization by considering two constraints: budget constraint and coupon constraint. In this article, an attempt has been taken to achieve the best result through the application of scientific method of optimization.

Keywords: Budget; Lagrange multipliers; sensitivity analysis; utility maximization (search for similar items in EconPapers)
JEL-codes: C3 C31 C51 C52 C53 C61 C67 C81 I3 O1 (search for similar items in EconPapers)
Date: 2023-02-17, Revised 2023-02-19
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published in Annals of Spiru Haret University Economic Series 1.23(2023): pp. 167-185

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