What are the properties of indirect utility function, Microeconomics

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.

Posted Date: 9/9/2013 3:04:04 AM | Location : United States







Related Discussions:- What are the properties of indirect utility function, Assignment Help, Ask Question on What are the properties of indirect utility function, Get Answer, Expert's Help, What are the properties of indirect utility function Discussions

Write discussion on What are the properties of indirect utility function
Your posts are moderated
Related Questions
Using a demand and supply diagram,analyse the effect on the market for Ghanaian football shirts. a. A fall in incomes in Ghana and neighboring countries

Topic: Please choose a case study in water related area and analyse it from at least two angles (or more) by examining the technical side as well as the economical, social and poli

Answer in True or Flees 1.  "Revealed preference methods for valuing environmental services and goods (for example hedonic price method, travel cost model, etc.) can reveal non-

The Long-Run Behavior of Natural Resource Prices Observations – Exhaustion of copper has increased by a hundred fold from 1880 through 1998 signifying a large increase in


WTO Agreements: The WTO administers 29 agreements; these cover different areas like trade in goods and services, investment measures, intellectual property rights, etc. Some o


Who are the competitors in the jarred baby food market? What market share do they have? How do Heinz and Beech-Nut compete with one another? Are the barriers to entry high or low f

Determine the Slutsky Equation. Income-Substitution Effect: The Slutsky Equation A fall into the price of a good may have two sorts of consequences: substitution effect, whe

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