Question

Derive walrasian demand, hicksian deman fuctions for the following utility functions. Also derive the indirect utility...

Derive walrasian demand, hicksian deman fuctions for the following utility functions. Also derive the indirect utility function and expenditure function.

1) U(X1,X2)= 2x1

2) U(X1,X2)= min{2x1,4x2)

3) U(X1,X2) =max{2x1,2x2]

4) U(X1,X2)=x12x22

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the Cobb-Douglas utility function u(x1,x2)=x1^(a)x2^(1-a). a. Find the Hicksian demand correspondence h(p, u) and the...
Consider the Cobb-Douglas utility function u(x1,x2)=x1^(a)x2^(1-a). a. Find the Hicksian demand correspondence h(p, u) and the expenditure function e(p,u) using the optimality conditions for the EMP. b. Derive the indirect utility function from the expenditure function using the relationship e(p,v(p,w)) =w. c. Derive the Walrasian demand correspondence from the Hicksian demand correspondence and the indirect utility function using the relationship x(p,w)=h(p,v(p,w)). d. vertify roy's identity. e. find the substitution matrix and the slutsky matrix, and vertify the slutsky equation. f....
Find the expenditure function, the Hicksian demand functions, and the Marshallian demand functions corresponding to the...
Find the expenditure function, the Hicksian demand functions, and the Marshallian demand functions corresponding to the indirect utility function V(p, r) = (a1/p1 + a2/p2)r. Note p is a vector of prices p1 and p2.
What are the expenditure and hicksian functions given this indirect utility function? (M/5Px)^1/5 (4M/5Py)^4/5
What are the expenditure and hicksian functions given this indirect utility function? (M/5Px)^1/5 (4M/5Py)^4/5
Suppose the indirect utility functions is: v(p1, p2, m) = ( ln(m /p2) , if p1...
Suppose the indirect utility functions is: v(p1, p2, m) = ( ln(m /p2) , if p1 ≥ m. (m−p1)/ p1 + ln(p1/ p2 ), if p1 < m. a) Compute the Marshallian demand for both goods x1 and x2 for the different values of m. b) Based on your answers from (a), can you guess the type of the original utility function u(x) (Hint: It is one of the 5 common utility functions we have taken in the course)? Explain...
Suppose the indirect utility functions is: v(p1, p2, m) = ln (m /p2) , if p1...
Suppose the indirect utility functions is: v(p1, p2, m) = ln (m /p2) , if p1 ≥ m.( m−p1)/ p1 + ln (p1/ p2) , if p1 < m. a) Compute the Marshallian demand for both goods x1 and x2 for the different values of m. b) Based on your answers from (a), can you guess the type of the original utility function u(x) (Hint: It is one of the 5 common utility functions we have taken in the course)?...
Consider the utility function: u( x1 , x2 ) = 2√ x1 + 2√x2 a) Find...
Consider the utility function: u( x1 , x2 ) = 2√ x1 + 2√x2 a) Find the Marshallian demand function. Use ( p1 , p2 ) to denote the exogenous prices of x1 and x2 respectively. Use y to denote the consumer's disposable income. b) Find the indirect utility function and verify Roy's identity c) Find the expenditure function d) Find the Hicksian demand function
Stacey needs two packs of sweetener for every cup of coffee. Derive the demand function for...
Stacey needs two packs of sweetener for every cup of coffee. Derive the demand function for perfect 2-1 complements, u(x1, x2) =min{2x1, x2}.
A consumer has utility function U(x1,x2)= x1x2 / (x1 + x2) (a) Solve the utility maximization...
A consumer has utility function U(x1,x2)= x1x2 / (x1 + x2) (a) Solve the utility maximization problem. Construct the Marshallian demand function D(p,I) and show that the indirect utility function is V (p, I) = I / (p1+ 2 * sqrt (p1*p2) + p2) (b) Find the corresponding expenditure function e(p; u). HINT: Holding p fixed, V and e are inverses. So you can find the expenditure function by working with the answer to part (a). (c) Construct the Hicksian...
1.54 The n-good Cobb-Douglas utility function is u(x) = A n i=1 x αi i ,...
1.54 The n-good Cobb-Douglas utility function is u(x) = A n i=1 x αi i , where A > 0 and n i=1 αi = 1. (a) Derive the Marshallian demand functions. (b) Derive the indirect utility function. (c) Compute the expenditure function. (d) Compute the Hicksian demands.
Suppose that a consumer has perfect complements, or Leontief, preferences over bundles of non-negative amounts of...
Suppose that a consumer has perfect complements, or Leontief, preferences over bundles of non-negative amounts of each of two commodities. The consumer’s consumption set is R^2(positive). The consumer’s preferences can be represented by a utility function of the form U(x1, x2) = min(x1, x2). 1. Illustrate the consumer’s weak preference set for an arbitrary (but fixed) utility level U. 2. Illustrate a representative iso-expenditure line for the consumer. 3. Illustrate the consumer’s utility-constrained expenditure minimisation problem. 4. Illustrate the derivation...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT