Explain the duality between direct and indirect utility, Microeconomics

Assignment Help:

Explain about the duality between direct and indirect utility.

Duality between Direct and Indirect Utility:

While seen how one can recover an indirect utility function by observed demand functions through solving the integerability equations. Now see how to resolve for the direct utility function.

The answer demonstrates quite nicely the duality between direct and indirect utility functions. This is most convenient to define the computations in terms of the normalized indirect utility function, there prices divided by income therefore expenditure is identically one. Hence the normalized indirect utility function is specified by

v(p) = maxx u(x)

that is px = 1


Related Discussions:- Explain the duality between direct and indirect utility

Long term microeconomics, Igora''s pizzeria want to know if it should stay ...

Igora''s pizzeria want to know if it should stay open this spring. Total Revenue will be $ 12,000 per week and Total Cost will be $ 18,000 per week. The fixed cost of running the b

Current event, Select a news article dated within the previous two months a...

Select a news article dated within the previous two months and analyze the issue using the economic concepts and theory learned in this class

Production possibility curve, how pp curve can solve the central problems o...

how pp curve can solve the central problems of an economy?

Economics, characteristics of microeconomics

characteristics of microeconomics

Movements in demand, diagram of extension and contraction in demand?

diagram of extension and contraction in demand?

Policies for technological advance, Policies for Technological Advance ...

Policies for Technological Advance Without better technology, increases in capital stock generated by investment rapidly run into diminishing returns. And without improvements

What is laffer curve, What is Laffer curve The Laffer curve is named af...

What is Laffer curve The Laffer curve is named after Professor Art Laffer who suggested that as taxes enhanced from fairly low levels, tax revenue received by the government wo

Structuralist economics, Structuralist Economics:Its a form of heterodox ec...

Structuralist Economics:Its a form of heterodox economicsthat emphasizes relationships betweenincome distribution, effective demand and political and economic power. Structures:

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