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Topic: Exercise 1.10, page 61
Conf: Chapter 1, Consumer Theory, Msg: 15210
From: Martin Caley (martin.caley@economics.treasury.gov.im)
Date: 3/7/2005 05:59 AM
Exercise 1.10, page 61 Martin Caley MCaley martin.caley@economics.treasury.gov.im
Just draw an ordinary indifference curve and then put some straight lines in joining points on your original curve. Bingo!
I think the reference in Exercise 1.22 to (1.10) is to the equations on page 23 and not Exercise 1.10.
dL/dxi = df(u(x))/du.du/dxi - lambda.pi = 0 by the Chain Rule and assuming an interior solution so equality holds.