Solving for the total derivative

73 Views Asked by At

In my Microeconomics course, we derive the theorem of Sufficiency of Consumer's First Order Conditions. We derive the following expression, where u(x,y) and the t just comes from the quasiconcavity of u. I attached the Exercice and solution as a picture. I understand everything but how they derive the total derivative.

The total derivative in the solution is:

$\frac{d(u\left((1-t)x+ty)\right)}{dt} = \sum_{i=1}^{n}\frac{\partial{u((1-t)x+ty})}{\partial{x_i}}(y_i-x_i) $

But I would have used the formula $\frac{du}{dt} = \frac{\partial{u}}{\partial{x}} \frac{dx}{dt} + \frac{\partial{u}}{\partial{y}} \frac{dy}{dt} $

Can someone please explain it to me?

enter image description here

1

There are 1 best solutions below

0
On BEST ANSWER

To expand on the comment, let $x=(x_1,x_2,\ldots,x_n)$ and $y=(y_1,y_2,\ldots,y_n)$.

You are differentiating the following with respect to $t$:

$$u\left[(1-t)(x_1,x_2,\ldots,x_n)+t(y_1,y_2,\ldots,y_n)\right]$$

or

$$u\left[(1-t)x_1+ty_1,(1-t)x_2+ty_2,\ldots,(1-t)x_1+ty_n)\right).$$

A straightforward application of the chain rule gives the result. For example, for the first term, we differentiate $u$ with respect to the first coordinate (getting $u_1$) and then multiply by the derivative of the expression $(1-t)x_1+y_1$ with respect to $t$ (which gives $y_1-x_1)$ to get

$$u_1[(1-t)x+ty]\cdot(y_1-x_1).$$

Note that I have written the partial derivative of $u$ with respect to the $i$-th coordinate by $u_i$ instead of by $du/dx_i$. The latter notation could be a bit confusing given the use of $x_i$ and $y_i$ for cooordinates of two different vectors.