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Consider the following indirect utility function:
v(p, w) = w2 /4p1p2
How can we recover the direct utility function (u(x))?
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- 1. Prove if the indirect utility function is quasiconvex The indirect utility function: V(p,w) = w[P1^(p/p-1) + P2^(p/p-1)]^((1-p)/p)An individual utility function is given by U(x,y) = x·y. Derive this individual indirect utility function. Using this individual indirect utility function, compute her level of utility when I = $800, px = $20 and py = $40. It is equal to?Suppose the function for the utility from good c is denoted as U(c)=2c1/2 . Which of the following expressions indicates the marginal utility of c?
- Derive the Marginal utility function from the following Total Utility function: TU = 200Q – 25Q² + Q³what is the derivative of the utility function UU = log (100-2PPii) + log(PPjj+PPdd) with respect to PPjj. Budget constaint XXii = 100 - 2PPiigiven the utility function U=150X+40X2-X3, derive average and marginal utility functions, Find the value of X at which total utility is maximum, and the value of X at which average utility is maximum?
- For a consumer with a utility function u=3x^2y^2 when px=3 and py=4, find the consumption levels that maximize his utility under the $120 budget constraint. What is the maximum benefit?Ceja has utility function U=A2*B2 , where A equals the number of apples she eats each week, while B is the number of bananas she eats each week. Ceja has $20 to spend on fruit each week. The price of an apple is $1, while the price of a banana is $0.25. Find out the combination of Apples and Bananas that maximize Ceja’s satisfaction. If price of Banana is increased by $.25, what will be the new combination of A and B that would maximize her utility? Show graphically and drive the demand curve for BananasSuppose that the indirect utility function takes the form(p, y) = f (p)y. What is the form of the expenditure function? What is the form of the indirect compensation function, p(p; q, y) in terms of the function f (.) and y?