Question: Problem 1 Recall the woodchuck identities: 1- V(p,e(p,U)) = u 2- deli/(9,1)) =1 where V(p, I) is the indirect utility function, and 6(1), u) is

 Problem 1 Recall the woodchuck identities: 1- V(p,e(p,U)) = u 2-
deli/(9,1)) =1 where V(p, I) is the indirect utility function, and 6(1),

Problem 1 Recall the woodchuck identities: 1- V(p,e(p,U)) = u 2- deli/(9,1)) =1 where V(p, I) is the indirect utility function, and 6(1), u) is the expenditure function. (a) Show that (i) might fail to hold if the underlying utility function U(:1:1, 2:2) is not continuous. (b) Show that (ii) might fail to hold if U(m1,:1:2) is not strictly increasing

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