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Sensitivity Analysis between Commodity and Budget: Utility Maximization Case

Author

Listed:
  • Mohajan, Devajit
  • Mohajan, Haradhan

Abstract

In this article, sensitivity analysis between commodity and total budget are discussed. The property of a commodity that enables it to satisfy human wants is called utility. In economics, utility maximization method is essential for the welfare of the organizations and society. This study deals with four commodities and two constraints, such as budget constraint, and coupon constraint. In this article, 6×6 Hessian and 6×10 Jacobian are operated for the sensitivity analysis. Throughout the paper scientific method of optimization are applied.

Suggested Citation

  • Mohajan, Devajit & Mohajan, Haradhan, 2022. "Sensitivity Analysis between Commodity and Budget: Utility Maximization Case," MPRA Paper 116495, University Library of Munich, Germany, revised 20 Dec 2022.
    • Handle: RePEc:pra:mprapa:116495
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    File URL: https://mpra.ub.uni-muenchen.de/116495/1/MPRA_paper_116495.pdf
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    References listed on IDEAS

    as
    1. Jamal Nazrul Islam & Haradhan Kumar Mohajan & Pahlaj Moolio, 2010. "Utility Maximization Subject to Multiple Constraints," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 4(1), pages 15-29, December.
    2. ROY, Lia & MOLLA, Rashed & MOHAJAN, Haradhan Kumar, 2021. "Cost Minimization Is Essential For The Sustainable Development Of An Industry: A Mathematical Economic Model Approach," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 21(1), pages 37-71.
    3. Mohajan, Haradhan, 2022. "Four Waves of Feminism: A Blessing for Global Humanity," MPRA Paper 114328, University Library of Munich, Germany, revised 09 Jul 2022.
    4. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Memo Writing Procedures in Grounded Theory Research Methodology," MPRA Paper 115246, University Library of Munich, Germany, revised 10 Aug 2022.
    5. Mohajan, Haradhan, 2018. "The Rohingya Muslims in Myanmar are Victim of Genocide!," MPRA Paper 89846, University Library of Munich, Germany, revised 15 Sep 2018.
    6. repec:ksb:journl:v:4:y:2011:i:1:p:116-128 is not listed on IDEAS
    7. Haradhan Kumar MOHAJAN, 2018. "Qualitative research methodology in social sciences and related subjects," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 7(1), pages 23-48, March.
    8. repec:sph:rjedep:v:3:y:2017:i:6:p:27-46 is not listed on IDEAS
    9. Mohajan, Devagit & Mohajan, Haradhan, 2022. "Profit Maximization Strategy in an Industry: A Sustainable Procedure," MPRA Paper 114675, University Library of Munich, Germany, revised 21 Jun 2022.
    10. Haradhan Kumar MOHAJAN, 2017. "Roles Of Communities Of Practice For The Development Of The Society," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 6(3), pages 27-46, September.
    11. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Importance of Total Coupon in Utility Maximization: A Sensitivity Analysis," MPRA Paper 115553, University Library of Munich, Germany, revised 17 Sep 2022.
    12. Mohajan, Haradhan, 2017. "Optimization Models in Mathematical Economics," MPRA Paper 83185, University Library of Munich, Germany, revised 11 Apr 2017.
    13. Mohajan, Haradhan, 2014. "Chinese Sulphur Dioxide Emissions and Local Environment Pollution," MPRA Paper 55953, University Library of Munich, Germany, revised 06 Apr 2014.
    14. MOHAJAN, Haradhan Kumar, 2017. "Two Criteria For Good Measurements In Research: Validity And Reliability," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 17(4), pages 59-82.
    15. Jamal Nazrul Islam & Haradhan Kumar Mohajan & Pahlaj Moolio, 2009. "Political Economy and Social Welfare with Voting Procedure," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 2, pages 42-66, December.
    16. Pahlaj Moolio & Jamal Nazrul Islam & Haradhan Kumar Mohajan, 2009. "Output Maximization of an Agency," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 3(1), pages 39-51, June.
    17. Mohajan, Haradhan, 2010. "Green net national product for the sustainability and social welfare," MPRA Paper 50840, University Library of Munich, Germany, revised 18 Feb 2011.
    18. Mohajan, Haradhan, 2013. "Friedmann, Robertson-Walker (FRW) Models in Cosmology," MPRA Paper 52402, University Library of Munich, Germany, revised 20 Dec 2013.
    19. Jamal NazrulIslam & Haradhan Kumar Mohajan & Pahlaj Moolio, 2011. "Output Maximization Subject to a Nonlinear Constraint," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 116-128, December.
    20. Mohajan, Haradhan, 2013. "Economic Development of Bangladesh," MPRA Paper 50663, University Library of Munich, Germany, revised 23 Sep 2013.
    21. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Utility maximization analysis of an emerging firm: a bordered Hessian approach," MPRA Paper 115838, University Library of Munich, Germany, revised 25 Sep 2022.
    22. Mohajan, Haradhan, 2016. "An Analysis of Knowledge Management for the Development of Global Health," MPRA Paper 82959, University Library of Munich, Germany, revised 16 Aug 2016.
    23. Mohajan, Haradhan, 2021. "Utility Maximization of Bangladeshi Consumers within Their Budget: A Mathematical Procedure," MPRA Paper 109993, University Library of Munich, Germany, revised 20 Jul 2021.
    24. Mohajan, Haradhan, 2020. "Quantitative Research: A Successful Investigation in Natural and Social Sciences," MPRA Paper 105149, University Library of Munich, Germany, revised 15 Nov 2020.
    25. Mohajan, Haradhan, 2013. "Ethiopia: A socio-economic study," MPRA Paper 52277, University Library of Munich, Germany, revised 10 Sep 2013.
    26. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Sensitivity Analysis among Commodities and Coupons during Utility Maximization," MPRA Paper 115554, University Library of Munich, Germany, revised 04 Oct 2022.
    27. Mohajan, Haradhan, 2022. "Cost minimization analysis of a running firm with economic policy," MPRA Paper 114951, University Library of Munich, Germany, revised 04 May 2022.
    28. Mohajan, Haradhan, 2015. "Sustainable Development Policy of Global Economy," MPRA Paper 82815, University Library of Munich, Germany, revised 30 Mar 2015.
    29. repec:ksb:journl:v:2:y:2009:i:1:p:42-66 is not listed on IDEAS
    30. Mahbubur RAHMAN & Haradhan Kumar MOHAJAN, 2019. "Rohingya-The Stateless Community Becoming the Lost Generation," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 8(2), pages 24-36, June.
    31. Mohajan, Haradhan, 2011. "Green marketing is a sustainable marketing system in the twenty first century," MPRA Paper 50857, University Library of Munich, Germany, revised 16 Feb 2012.
    32. Juster, F. Thomas, 1990. "Rethinking utility theory," Journal of Behavioral Economics, Elsevier, vol. 19(2), pages 155-179.
    33. Mohajan, Haradhan, 2021. "Product Maximization Techniques of a Factory of Bangladesh: A Sustainable Procedure," MPRA Paper 108094, University Library of Munich, Germany, revised 15 May 2021.
    34. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Feminism and feminist grounded theory: a comprehensive research analysis," MPRA Paper 114914, University Library of Munich, Germany, revised 15 Jul 2022.
    35. Mohajan, Haradhan, 2022. "Maximum profit ensured for industry sustainability," MPRA Paper 114801, University Library of Munich, Germany, revised 15 May 2022.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Budget; Lagrange multipliers; sensitivity analysis; utility maximization;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • D6 - Microeconomics - - Welfare Economics
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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