Sensitivity Analysis Among Commodities and Coupons During Utility Maximization

2022

This study takes an attempt to discuss utility maximization policies. The property of a commodity that enables it to satisfy human wants is called utility. The sensitivity analysis is included in the operation to show optimal policy of an organization. This study deals with four commodities and two constraints, such as budget constraint, and coupon constraint. The economic predictions of future production are necessary for the sustainable production. In the study Lagrange multipliers technique is applied to operate 6×6 bordered Hessian and 6×10 Jacobian appropriately. The sensitivity analysis between commodity and total budget are discussed with detail mathematical analysis.

Section: Methodology Of the Studymentioning

confidence: 99%

Importance of Total Coupon in Utility Maximization: A Sensitivity Analysis

2022

“…Lagrangian function ( 4) is a 6-dimensional unconstrained problem that maximizes utility functions; where 1  and 2  are two Lagrange multipliers. Now taking first and second order and cross-partial derivatives in (4) we obtain (Islam et al 2009a,b;Mohajan & Mohajan, 2022d);…”

Section: An Economic Model Of Utilitymentioning

confidence: 99%

“…Now we analyze the nature of Lagrange multiplier 1  when total coupon K of the consumers increases. Taking   10 1 T , (i.e., term of 1 st row and 10 th column) from both sides of (15) we get (Islam et al, 2011;Mohajan & Mohajan, 2022e),…”

Section: H J mentioning

confidence: 99%

Sensitivity Analysis Between Lagrange Multipliers and Consumer Coupon: Utility Maximization Perspective

2023

FMS

Sensitivity analysis is a vital concept in optimization models. From this analysis an economist can predict on the outcome of an economic model by the use of certain range of input variables. Utility maximization policy is essential for the sustainability of the economic organizations. This study takes an attempt to discuss sensitivity analysis between Lagrange multipliers and consumer coupon, where utility maximization is analyzed with detail mathematical analysis. In the study method of Lagrange multipliers is used to investigate the utility function; subject to two constraints: budget constraint, and coupon constraint. Moreover, two Lagrange multipliers are used here with four commodity variables.

“…Now taking first and second order and cross-partial derivatives in (4) we obtain (Islam et al 2009a, b;Mohajan & Mohajan, 2022d);…”

Section: Economic Model Of Utilitymentioning

confidence: 99%

Sensitivity Analysis Between Commodity and Budget: Utility Maximization Case

2023

In this article, sensitivity analysis between commodity and total budget are discussed. The property of a commodity that enables it to satisfy human wants is called utility. In economics, utility maximization method is essential for the welfare of the organizations and society. This study deals with four commodities and two constraints, such as budget constraint, and coupon constraint. In this article, 6×6 Hessian and 6×10 Jacobian are operated for the sensitivity analysis. Throughout the paper scientific method of optimization are applied.