Economics Question (Microeconomics) [Example Problem on Optimal Consumption]
Author: shiroeExecutions: 70
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Enter non-zero positive values for M, Px, py, and n.
Outputs the y-intercept of the budget constraint line.
Outputs the x-intercept of the budget constraint line.
Outputs the value of the utility function u at the y-intercept of the budget constraint line.
Output the value of the utility function u at the x-intercept of the budget constraint line.
Output the value of the utility function u at the y-intercept of the budget constraint line.
Output the optimal consumption quantity of good y.
Output the optimal consumption quantity of good x.
Outputs the y-intercept of the budget constraint line.
Outputs the x-intercept of the budget constraint line.
Outputs the value of the utility function u at the y-intercept of the budget constraint line.
Output the value of the utility function u at the x-intercept of the budget constraint line.
Output the value of the utility function u at the y-intercept of the budget constraint line.
Output the optimal consumption quantity of good y.
Output the optimal consumption quantity of good x.
| y-intercept | x=0, y=M/py |
| x-intercept | y=0, y=M/px |
| The value of utility u at the y-intercept | u = u(0, M/py), u = nxy |
| Value of utility u at the x-intercept | u=u(M/px,0), u=nxy |
| The value of u at the optimal consumption point | The value of u at the point of tangency between the budget constraint line and the utility curve |
| Optimal Consumption of Assets | The y-coordinate of the point of tangency between the budget constraint line and the utility curve |
| Optimal Consumption of Good x | The x-coordinate of the point of tangency between the budget constraint line and the utility curve |
R6 (2024).08/16 (fr)_Ver.001
Digit setting: 50 digits. Digit count can be changed. Real number calculation mode.
Digit setting: 50 digits. Digit count can be changed. Real number calculation mode.
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Given the budget constraint line and the utility function u for two goods, x and y, find the optimal consumption quantities.
Assume that the budget constraint equation is a linear equation of the form M = px · x + py · y.
M represents the budget (budget amount), px and py are the prices of goods x and y, respectively, and x and y are the consumption quantities (amounts obtained or purchased).
The utility function u is of the form u = nxy, where n is a coefficient (constant).
Although the optimal consumption levels for this utility function do not correspond to corner solutions,
the utility u at both the x- and y-intercepts of the budget constraint line is also calculated and displayed for reference.