What are the properties of indirect utility function, Microeconomics

Assignment Help:

What are the properties of indirect utility function?

Properties of the indirect utility function:

While u(x) is continuous and monotonic onto RL+ and (p, m) > 0, the indirect utility function has the given properties as follows:

a. v(p, m) is nonincreasing in p; which is, when p′> p, v(p′, m) < v(p, m). Likewise, v(p, m) is nondecreasing in m.

b. v(p, m) is homogeneous of degree 0 into (p, m).

c. v(p, m) is quasiconvex in p; which is, {p: v(p, m) < k} is a convex set for each k.

d. v(p, m) is continuous at all p >> 0, m > 0.


Related Discussions:- What are the properties of indirect utility function

Example of consumer surplus, Example: The Value of Clean Air Air is fre...

Example: The Value of Clean Air Air is free in sense that we do not pay to breathe it. Question: Are benefits of cleaning up air worth the costs? People pay extra to buy

Define the concept of opportunity cost, 1. Define the concept of opportunit...

1. Define the concept of opportunity cost in your own words. Given an example from your own life of the opportunity cost of a decision (do NOT use classroom examples).  Explain why

Mathematical derivation of ordinary demand function, Mathematical Derivatio...

Mathematical Derivation of ordinary demand function: Here we present the mathematical and more general proof of the above result. Consider, again, the initial price income sit

Compare and contrast the macroeconomic performances , 1. Assessment Criteri...

1. Assessment Criteria The coursework will be marked on the overall outcome including: structure, quality of reasoning, quality of written English, data analysis, referencing, sty

What is the difference between capital and capital value, What is the diffe...

What is the difference between 'Capital' and 'Capital value'?   "The total amount of money or other resources owned or used to obtain future income or benefits." On the other h

Change in consumer income, Change in consumer income: A change in consum...

Change in consumer income: A change in consumer income may bring about a change in the quantity demanded of a good or service. However, the direction of change in quantity deman

Optimal Production Quantity, Wholemark is an Internet order business that s...

Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.50 per card, and the cos

Cost function, how do minimum unit costs change with changes in fixed cost?...

how do minimum unit costs change with changes in fixed cost?

Assignment , I need someone to solve my assignment

I need someone to solve my assignment

The concept of consumer surplus, consumer surplus and elasticity of demand ...

consumer surplus and elasticity of demand assumption of consumer surplus criticisms of consumer surplus consumer surplus in terms of indifference curves importance of the concept o

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