1. Mathematics for Economist by Simon and Blume question 19.

4 page 469
2. Consider the optimization problem
max x x f ( x1 x n)
1

Subjected to

g1 ( x 1 x n ) c 1 g m ( x 1 x n ) c m

Determine the value

df
.
d c1

3. Consider a utility maximization problem of the utility U (x , y ) subject to the budget

constraint
Px x+ PY y M . Determine
dx

a) d P
y

and a) d P where is the lagrangian multiplier.

y

4. Consider the utility function which a consumer maximizes

1

U ( x , y )= A [ x +(1) y ]

subjected to the budget constraint

a) the demand function of
dx

dx

b) d P c) d P
x
y

x y

d)

dU
dM

Px x+ PY y M . Determine