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

Explain about banking cycle, Q. Explain about Banking Cycle? An economi...

Q. Explain about Banking Cycle? An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become

Determine the wage contract , Assume that the employer (principle) wants it...

Assume that the employer (principle) wants its employee (agent) to work hard [You can safely assume that this maximizes the principle's expected profits from his business]. There a

Indifference curves, why men and womens indifference curves are different

why men and womens indifference curves are different

Distinguish between fiscal and monetary policy, Problem: (a) Distingui...

Problem: (a) Distinguish between fiscal and monetary policy, giving examples where appropriate. (b) Explain how fiscal and monetary policies might be used by a government

SAC and LAC, What is the explanation for SAC to be tangent to LAC?(In other...

What is the explanation for SAC to be tangent to LAC?(In other words, why must both be tangent to each other)?

Stoichioemtry and moles, How would you convert from moles of iron(III) oxid...

How would you convert from moles of iron(III) oxide to moles of carbon monoxide?

Functions of money in any modern economy, Functions of money in any modern ...

Functions of money in any modern economy: A medium of exchange: Money facilitates the exchange of goods and services because, people exchange the goods and services they produ

Elasticity, if australian governmrnt imposed a sales tax on petrol by $0.25...

if australian governmrnt imposed a sales tax on petrol by $0.25, then the price of petrol will rise by 0.25. consumers can not get by without petrol, so they have to pay the whole

Types of price discrimination, First Degree Price Discrimination - The mono...

First Degree Price Discrimination - The monopolist sells different units of the commodity at different prices which differ from person to person. Second Degree Price Discriminat

Example of regulated monopoly , As there are natural monopoly market situat...

As there are natural monopoly market situations it is in the public interestto permit monopolies, but traditionally in the United States they are regulated with respect to price.

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