Consider the following indirect utility function v(p1,p2,y) = y/(p1 + p2),where p1 is the price of good 1,p2 is the price of good 2 and y is the income level.
(a) What is the demand functions?
(b) What is the direct utility function?
(c) What is the expenditure function?
- 知識分工者Lv 61 decade agoFavorite Answer
間接效用函數為 V(P1,P2,Y) = Y/(P1+P2)
令Y/(P1+P2)=U --> expenditure function為Y=(P1+P2)U
利用Shephard's Lemma 可求出Hickian demand (Xh)
利用Roy's Identity 可求出Marshllian demand (X)
X2= -(dV/dP2)/(dV/dY)=Y/(P1+P2)Source(s): myself