Derive a Demand Function From a Utility Function

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Learn how to derive a demand function form a consumer's utility function. In this problem, U = X^0.5 + Y^0.5.

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Órla Mannion, the method will work for quasilinear convex, cobb-douglass and perfect complements (optimum at x equals to y) because optimum is at the tangency where IDC is tangent to the budget constraint. This method won't work for perfect substitutes, max functions, and quasilinear concave because all 3 of them end up touching axes. Therefore our optimum would be on the boundary. Hope that helps

Robertchaseman

'Demand for good x is the consumers income divided by this mess in the bottom' hahahahah describes this process perfectly

takeflightbirdyy

*"this mess in the denominator"* lmao

laurysong

Video is very helpful thank you - Just wondering if this applies only to Cobb Douglas utility functions or for perfect compliments and perfect substitutes too? Thanks!

orlamannion

really awesome video, thanks so much for helping me, and many others like me, out

John-lgpt

thanks, I really couldn't remember exactly how to do it so this helped a lot :)

taekiotan

this is class cheers. this is 2nd year university stuff lol

marcmueller

Please can you show me the demand function for good X and Y when the utility function is given as U(X, Y)

serwaajuliet

my prof said that for u = x^0.5+y^0.5 the demand curve would be x = i/px (py/px+py)? i don't get it

advaitshanker

Is there a situation where we cannot use martilian demand

tushargupta

Keep creating videos like this. Very helpful.

parulmahawar

Can we figure out if these two goods are related in consumption from from the demand function?

afiafarjanapromi

What if the partial derivative of U with respect to Y is equal to 1. So we can’t solve for Y cause it’s cancelled out. As is the case for U = x^0.5 +y?

eramars

When we first solved for y, was that the demand function for y

mahatabchowdhury

dang really helped me out in understanding thank you

stephaniet

what if it is + x just? the derivative will just be one. Can I still go on with this method?

megapanka

Now what if the utility function is U= xy

wickedprophet

Thank you it really helped to better my understanding

elnaesembe

shouldnt your first y be raised to -2?

CARMELOGP

hi, first I thank you for your great and clear explanations . what the difference between this example and the Cobb-Douglas Function ?

seerat

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