Visual Tutorial on the Calculus proof of budget lines and indifference curves using the Lagrange Multiplier. Playlist on Consumer Theory • Consumer Theory www.MyBookSucks...
Normally you would write the budget constraint equal to zero like Px + Py - C. So the Lagrange: U(X,Y) - lambda (constraint). Ex: U(X,Y): 5XY. Budgetconstraint x + y = 1000 L: 5XY - lambda (x + y - c)