Consider the following indirect utility function: V(p, 1) = II ₁(ail Jai Pi where 1 ai = 1, and ai #0, Vi 1. What's the demand function for x? (Hint: Take logarithm to both sides of the equation) 2. What's the original utility function? (Hint: If n is too abstract, let n = 2)
Consider the following indirect utility function: V(p, 1) = II ₁(ail Jai Pi where 1 ai = 1, and ai #0, Vi 1. What's the demand function for x? (Hint: Take logarithm to both sides of the equation) 2. What's the original utility function? (Hint: If n is too abstract, let n = 2)
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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