Sensitivity Analysis for Utility Maximization: A Study on Lagrange Multipliers and Commodity Coupons
Sensitivity Analysis for Utility Maximization: A Study on Lagrange Multipliers and Commodity Coupons
Author(s): Devajit Mohajan, Haradhan Kumar MohajanSubject(s): Policy, planning, forecast and speculation, Economic development, Socio-Economic Research
Published by: Editura Fundaţiei România de Mâine
Keywords: Lagrange multipliers; commodity coupon; sensitivity analysis; utility maximization;
Summary/Abstract: In this study sensitivity analysis among Lagrange multipliers and commodity coupons is discussed with detailed mathematical analysis. In economics, the utility maximization method is essential for increasing sustainable production and profit maximization. Two types of constraints, such as budget constraint, and coupon constraint are used to operate sensitivity analysis; consequently, two Lagrange multipliers are applied for the detailed mathematical analysis.
Journal: Journal of Economic Development, Environment and People
- Issue Year: 12/2023
- Issue No: 1
- Page Range: 25-40
- Page Count: 16
- Language: English