In this graphic, you can select a utility function and budget restriction. If you
press "Draw", the corresponding graphic is created and commented.

You can also display the values of the function that result when you solve the
constraint for y, and insert it into the utility function and its derivative. You can
see either that the maximum is reached at the optimum point or that it results in
a boundary solution.

"Clear Graph" reinitializes the graph.

ATTENTION: Machines are stupid. If the graph and the numerical solutions
appear absurd, this may be due to the fact that the determined solution of the
equation system was established incorrectly, because the numerical algorithm is
not converged in an inner solution.

Price of good x:
Price of good y: Budget:

Draw derivative and function values after inserting the restiction

Utility function

(c) by Christian Bauer

Prof. Dr. Christian Bauer

Chair of monetary economics

Trier University

D-54296 Trier

Tel.: +49 (0)651/201-2743

E-mail: Bauer@uni-trier.de

URL: https://www.cbauer.de