Question: Consider the following indirect utility function derived from a consumer's utility maximization: v ( p , y ) = 1 ( y p 1 )
Consider the following indirect utility function derived from a consumer's utility maximization:
where is income, is price of commodity for and and are parameters.
a Determine the Lagrange multiplier of the underlying consumer's utility maximization
problem.
Marks
b Determine the Marshallian demand functions.
Marks
c Explain the concept of duality in consumer theory.
Marks
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