9.6 Optimization under constraints with a function to be chosen freely

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