Recent content by amaya244

Thanks. Then, can we say 1/x times y is y/x?

You're right, it says y/x not x/y. My mistake. Does it all look okay to you then?

Homework Statement When attempting to divide the following equality (a "tangency condition" in microeconomic consumer theory), I'm puzzled by the solution derived here, please explain the procedure for arriving at the solution. Many thanks! Homework Equations I differentiated the...

Pffft! That's what I thought, but then where did C2 come from? Didn't it get substituted out?

No, just 1/1 + P actually :-) Thank you Mark44, Can I just ask, once you differentiated the first and second parts of F, with respect to c1, did you arrive at the following equation? u'(c1) = (1 + r) β*u'(c2) Amy xx

Sorry Mark44, I totally understand what you mean. Let me explain a little. Firstly, I made an error. c1 should indeed be in place of c2 (in the 1st utility function). Secondly, 1/1+P is a 'discount factor' that can be simply written as a 'B': u(c1) + B u(c2) When B is close to 1, the...

Hi guys, this is my first post, a friend of mine said I should try the site out. Here it goes.I have a function: Max (c1) = u(c1) + 1/1+p * u(c2) (c2) is equal to this: (1+r)^2 * A0 + (1+r) (Y1-c1) + Y2 Substituting it into the max gives: u(c1) + 1/1+p * u [(1+r)^2 * A0 + (1+r) (Y1-c1) +...