What is a converging economy? a converging economy is incapable of catching up to high‑income economies due to low levels of technology and human capital. a converging economy has surpassed other high‑income economies in terms of technology by investing in human and physical capital. a converging economy describes the downward spiral of all higher‑income economies to the state of lower‑income economies. a converging economy has the capability to catch up with higher‑income economies in terms of technology by investing in human and physical capital.

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.