Examples for optimization subject to equality constraints, Lagrange
Channel: Mathematics for Economists
Date: 2016-11-02

Example for maximization under equality constraints, determining the first-order conditions, finding candidate points, evaluating the candidate points under the objective function, checking the second-order conditions, and two examples where constraint qualification breaks down.

Errata:  At 27:25 only det H_b(3) negative must be checked.  H_b(2) plays no role.