Question: Consider the following indirect utility function v(p,m) = Km / P 1 P 2 1- Where K= (1-) 1- , with 0 < <1 Use

Consider the following indirect utility function

v(p,m) = Km / P₁ P₂ 1-

Where K= (1-)^1- , with 0<<1

Use Roy's identity to find the demand funcitons. Let m = 1.

Derive the direct utility function u(p).

Plug in the demand functions Roy's identity to verify that u(p) is indeed the direct utility function corresponding to the indirect utility functions v(p).

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