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

Ask an Expert

Your posts are moderated

Write your message here..

Related Questions

Exchange rate, if a country is managing its exchange rate what will do to c... if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

Magnatic properties, What is paramagnetic? What is paramagnetic?

Macro economics, Static and dynamic multgipier Static and dynamic multgipier

Which of the following statements is true?, Nonmetals tend to gain electron... Nonmetals tend to gain electrons. A-Metals tend to lose electrons. B-Atoms have the natural tendency to C-fill their outermost shells. All of the above. D-

Mangerial Economics, A portion of the demand schedule for wax candles (per ... A portion of the demand schedule for wax candles (per case) is shown below. Px $50 $30 $10 Qx 500 600 700 What is the demand curve (straight line) that corresponds to the schedu

Explain about non-renewable resources, How the above would apply to non-ren... How the above would apply to non-renewable resources such as oil. This has general applicability to any competitive market. The issue here is that potential supply has a finite

Report, How much does it cost How much does it cost

Price Elasticity, #questAbout four years ago, Kanye West performed at the U... #questAbout four years ago, Kanye West performed at the UIC Pavilion. General admission tickets were priced at $30. Concert promoters say that price elasticity of demand for genera

Role of marginal propensity to consume in accounting for gro, how can we br... how can we bring in the marginal propensity to consume

Solve, 1. Suppose that Mr. John has the following Cobb-Douglas utility func... 1. Suppose that Mr. John has the following Cobb-Douglas utility function U = 6X^2/3y^1/3 the market price of X and Y commodity are $1 and $2, respe