Question: Show that the indirect utility function given in Eq. (15.21) is consistent with the Willig condition by demonstrating that Eq. (15.14) holds. (first use V(

Show that the indirect utility function given in Eq. (15.21) is consistent with the Willig condition by demonstrating that Eq. (15.14) holds. (first use V(•) to derive θ ^q(•), and then state the relevant elasticities.)

Eq (15.21)

Eq (15.14)

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V(p.y.q) = exp(-ry) Y + exp(a+Bp+0q) (15.21)

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