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

Foreign direct investment, Foreign Direct Investment: It is an investment b...

Foreign Direct Investment: It is an investment by a company (based in one country) in an actual operating business, including real physical capital assets (such asmachinery, buildi

Describe the law of supply, Supply of a commodity is functionally related t...

Supply of a commodity is functionally related to its price. The law of supply rated to this function relationship between price of a commodity and its supply. In contrast to the in

Explain why each of the following factors may influence the, Ask qExplain w...

Ask qExplain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the com

Consumer and producer surplus, analyse the rise and fall in the price under...

analyse the rise and fall in the price under market equillibrium situation?

Total sales of industry, The sales of a company are the part of the total s...

The sales of a company are the part of the total sales of industry. If the conditions of industry changes then the sales of each of the firm in the industry is affected. All teh ti

What is heterodox economics, Q. What is Heterodox Economics? Heterodox ...

Q. What is Heterodox Economics? Heterodox Economics:Different schools of thought (including post-Keynesian, Marxian, structuralist and institutionalist economics) which reject

Distinction between human capital and resource and manpower , Distinction b...

Distinction between Human Capital and Resource and Manpower Health and education are normally considered as human capital. Health includes both physical health and fitness. E

The basics, the basics in micro economics

the basics in micro economics

Cost, relationship between tfc , tvc , tc

relationship between tfc , tvc , tc

Microeconomic analysis, what is the relevance of microeconomic analysis in ...

what is the relevance of microeconomic analysis in contemporary Nigerian economy

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