Utility Maximization of Bangladeshi Consumers within Their Budget: A Mathematical Procedure

Abstract

A consumer is considered as a person or a group of people who uses purchased goods, products, or services only for personal use, and not for manufacturing or resale. Consumers usually purchase valuable and useful commodities or goods by spending all or partial of their income. The property of a commodity that enables it to satisfy human wants is called utility. Producers must be conscious to increase the utility among the consumers. This study has considered the maximization of utility problem of consumers of Bangladesh subject to two constraints; namely, budget constraint and coupon constraint. Consequently, in the study two Lagrange multipliers are used and interpreted these with mathematical analysis. Prediction of consumer behavior will help both producers and consumers to take decision of their future economic productions and consumptions, respectively. This article is ornamented with sufficient theorems and economic analyses. So that all the readers find interest when go through the economic analysis of utility maximization.

Sensitivity Analysis Among Commodities and Coupons During Utility Maximization

“…Haradhan Kumar Mohajan has considered the maximization of utility problem of consumers of Bangladesh subject to two constraints: budget constraint and coupon constraint (Mohajan, 2017a(Mohajan, , 2021a. In two studies he has explored interpretation of Lagrange multiplier to predict the cost minimization policy using Cobb-Douglas production function.…”

“…In this study we want to develop sensitivity analysis among commodities and coupons during the utility maximization problem; considering two constraints: budget constraint and coupon constraint (Mohajan, 2021a;Mohajan & Mohajan, 2022c, d). We have included four commodity variables to analyze the optimization methods of multivariate calculus.…”

Importance of Total Coupon in Utility Maximization: A Sensitivity Analysis

“…Lagrangian function ( 4) is a 6-dimensional unconstrained problem that maximizes utility functions; where 1  and 2  are two Lagrange multipliers. Now we consider the bordered Hessian (Mohajan, 2021a;Mohajan & Mohajan, 2022c)…”

“…Now the 6×10 Jacobian matrix for G , regarded as G J is given by (Mohajan et al, 2013;Mohajan, 2021a),…”

Utility Maximization Analysis of an Organization: A Mathematical Economic Procedure

“…On the other hand, opposite of these, such as pain, evil, unhappiness, bad, etc. are considered as negative utility (Bentham, 1780;Stigler, 1950;Mohajan, 2021a). Utility indicates that individuals seek to obtain the highest level of satisfaction from their purchasing goods (Kirsh, 2017).…”