Question: 7 . 4 . Consider the indirect utility function given by v ( p 1 , p 2 , m ) = m p 1
Consider the indirect utility function given by
a What are the demand functions?
b What is the expenditure function?
c What is the direct utility function?
A consumer has a direct utility function of the form
Good is a discrete good; the only possible levels of consumption of good are and For convenience, assume that and
a What kind of preferences does this consumer have?
b The consumer will definitely choose if is strictly less than what?
c What is the algebraic form of the indirect utility function associated with this direct utility function?
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