Sensitivity Analysis among Commodities and Prices: A Utility Maximization Perception

Mohajan, Devajit and Mohajan, Haradhan (2022): Sensitivity Analysis among Commodities and Prices: A Utility Maximization Perception. Published in: Law and Economy , Vol. 2, No. 2 (6 February 2023): pp. 1-16.

Abstract

Utility maximization policy is essential for the sustainability of the firms and organizations. In this article, two Lagrangian multipliers are used to perform the research successfully. Moreover, the paper takes attempts to run with four commodities and two constraints, such as budget constraint, and coupon constraint. In the study, both Hessian and Jacobian are used to show the mathematical calculations precisely and concisely. The sensitivity analysis among two commodities and one price unit of commodity are included in this paper for forecasting on the economic model during the utility maximization procedure.

• Item Type: MPRA Paper
• Language: English
• Keywords: Lagrange multipliers, sensitivity analysis, utility maximization
• Subjects: A - General Economics and Teaching > A1 - General Economics > A11 - Role of Economics ; Role of Economists ; Market for Economists; A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables; 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; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models

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