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

A3, Consider the model of corruption explored by Shleifer and Vishni’s wher...

Consider the model of corruption explored by Shleifer and Vishni’s where there is one government-produced good X. There is a demand for that good described by the inverse demand eq

Supply and demand, During the 1990s, technological advance reduced the cost...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

Saving and Investment, What does Keynesian consumption function say about t...

What does Keynesian consumption function say about tax cuts

The income elasticity of demand , The income elasticity of demand calculate...

The income elasticity of demand calculates the responsiveness of the quantity demanded of a commodity to changes in consumers' incomes.  This is typically calculated by replacing t

Economic instruments, Economic instruments Financial rewards, incentives an...

Economic instruments Financial rewards, incentives and penalties that operate automatically via market forces, to encourage beneficial behavior.

Explain how unemployment could be voluntary or involuntary, Explain how une...

Explain how unemployment could be voluntary or involuntary . Start off with a definition of the labour force and then outline the proportion of the labour force which would be

Theory of the firm, Profit maximization is theoretically the most sound but...

Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol’s sales

Demand functions for one product facing two markets, Suppose a firm faces t...

Suppose a firm faces two markets for the same product. In market A, the demand function is PA=60-QA, while in market B the demand function is PB=36-0.5QB. The total cost function i

Contenporary issues, what the contenporary issues in micro economics in nig...

what the contenporary issues in micro economics in nigeria

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