Derive the hicksian demand function using indirect utility , Mathematics

Assignment Help:

(a) Derive the Marshalian demand functions and the indirect utility function for the following utility function:

u(x1, x2, x3) = x1 1/6 x2 1/6 x3 1/6    x1≥ 0, x2≥0,x3≥ 0

 [Hint: Try to make use of your results from problem 3 in Assignment 1 instead of redoing all the calculations here.]

(b) Using the indirect utility function that you obtained in part (a), derive the expenditure function and from it, derive the Hicksian demand function for good 1.

(c) Jack and his grandfather are sitting at the dinner table, discussing their lives. Both share the same utility function as given in part (a). Jack is boasting about his $5000 a month salary, with per-unit prices of x1, x2 and x3 being $4, $4 and $16 respectively. Jack's grandfather claims that the old days were much better because although his salary was $500 a month, the per-unit prices of x1, x2and x3 were all only $1. Do you agree with his grandfather?

 


Related Discussions:- Derive the hicksian demand function using indirect utility

Solve the limit problem, Solve the Limit problem as stated  Limit x tends...

Solve the Limit problem as stated  Limit x tends to 0 [tanx/x]^1/x^2 is ? lim m tends to infinity [cos (x/m)] ^m is? I need the procedure of solving these sums..

Invoices and trade discounts, Natureland garden center buys lawn mowers tha...

Natureland garden center buys lawn mowers that list for $679.95 less a 30% discount. What is the dollar amount of the discount?

Finite population correction factor or fpcf), Finite Population Correction ...

Finite Population Correction Factor Or Fpcf) If a specified population is relatively of small size and sample size is more than 5 percent of the population then the standard er

Statistics, The winning team''s score in 21 high school basketball games wa...

The winning team''s score in 21 high school basketball games was recorded. If the sample mean is 54.3 points and the sample standard deviation is 11.0 points, find the 90% confiden

Dot product - vector, Dot Product- Vector The other topic for discu...

Dot Product- Vector The other topic for discussion is that of the dot product.  Let us jump right into the definition of dot product. There is given that the two vectors a

What is monomials and polynomials in maths, What is Monomials and Polynomia...

What is Monomials and Polynomials in maths? An expression like 7x is called a monomial. A monomial is an integer, a variable, or a product of integers and variables. Other e

What is unitary method, Explanation of  Unitary Method Unitary Method k...

Explanation of  Unitary Method Unitary Method keeps of following two steps:-      Step 1 involves find the value of one unit.      Step 2 involves find the value of requi

Help, I really need help with 30 60 90 right triangles and my last tutor di...

I really need help with 30 60 90 right triangles and my last tutor did not make sense to me so can you please help

Childrens errors are a natural and inevitable part, Childrens errors are a ...

Childrens errors are a natural and inevitable part of their process of learning. In the process of grasping new concepts, children apply their existing understanding, which may

Ogive, How many types of ogives?

How many types of ogives?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd