Sensitivity Analysis among Commodities and Coupons during Utility Maximization

Mohajan, Devajit and Mohajan, Haradhan (2022): Sensitivity Analysis among Commodities and Coupons during Utility Maximization. Published in: Frontiers in Management Science , Vol. 1, No. 3 (6 December 2022): pp. 13-28.

Abstract

In mathematical economics utility is the vital concept. In the society utility is considered as the tendency of an object or action that increases or decreases overall happiness. This study tries to discuss sensitivity analysis during utility maximization investigation. Actually the method of Lagrange multipliers is a very useful and powerful technique in multivariable calculus. In this paper mathematical formulation of Lagrange multipliers is derived through the optimal devise. This article has taken attempts to find relations among commodities and coupons when the prices of different commodities increase or decrease.

• Item Type: MPRA Paper
• Language: English
• Keywords: Coupon constraints, Lagrange multipliers, sensitivity analysis, utility maximization
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C35 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

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