- A Comsumer S Indirect Utility Fuction 1 (20 KiB) Viewed 28 times
A comsumer's indirect utility fuction
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A comsumer's indirect utility fuction
A comsumer's indirect utility fuction
Problem 3 Consider a consumer's indirect utility function: a w ep, tu) = = for any w > 0, p > 0. מת ΣΡ; j=1 (a) Use Roy's identity to derive the Marshalian demand for the consumer. (b) Is this demand function homogenous of degree zero in (p,w)? (c) Derive the corresponding Slutsky substitution matrix. (d) Derive the Hicksian demand.
Problem 3 Consider a consumer's indirect utility function: a w ep, tu) = = for any w > 0, p > 0. מת ΣΡ; j=1 (a) Use Roy's identity to derive the Marshalian demand for the consumer. (b) Is this demand function homogenous of degree zero in (p,w)? (c) Derive the corresponding Slutsky substitution matrix. (d) Derive the Hicksian demand.