Examlex
Joanne invested $15,000 six years ago. Her arithmetic average return on this investment is 8.72 percent, and her geometric average return is 8.50 percent. What is Joanne's portfolio worth today?
Hicksian Substitution Effect
Alternative to the Slutsky equation for decomposing price changes without recourse to indifference curves.
Indifference Curves
A graph showing different bundles of goods between which a consumer is indifferent.
Lagrangian
Function to be maximized or minimized, plus a variable (the Lagrange multiplier) multiplied by the constraint.
Lagrange Multiplier
A technique used in constrained optimization problems to find the maximum or minimum of a function subject to constraints.
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