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Homework answers / question archive / Consider the problem of maximizing the utility function u = f(c) + g(s) subject to the budget constraint pc + s=y where c is consumption and s is savings

Consider the problem of maximizing the utility function u = f(c) + g(s) subject to the budget constraint pc + s=y where c is consumption and s is savings

Economics

Consider the problem of maximizing the utility function u = f(c) + g(s) subject to the budget constraint pc + s=y where c is consumption and s is savings. derive and interpret the Slutsky equations and explain what happens if g double prime (s) = 0

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