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

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