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How to solve:
To find local (and if possible) global extreme points and comparative statics result:
01. z=ax^2+by^2+xy-x-2y;
02. 4ab>1;
03. a,b>0;
04.
why so? what is wrong?
05. G=ax^2+by^2+xy-x-2y-λ(4ab-1)
06. G'[x]=2ax+1-1-λ=0
07. G'[y]=2by+1-2-λ=0
08. G'[λ]=4ab+1=0
To find local (and if possible) global extreme points and comparative statics result:
01. z=ax^2+by^2+xy-x-2y;
02. 4ab>1;
03. a,b>0;
04.
why so? what is wrong?05. G=ax^2+by^2+xy-x-2y-λ(4ab-1)
06. G'[x]=2ax+1-1-λ=0
07. G'[y]=2by+1-2-λ=0
08. G'[λ]=4ab+1=0
