Substitute the above demand functions into the utility function to get what is known as the " indirect " utility function, which gives utility as a function of income, prices, and amenities. (b) Using your answer from (a), how does utility change when income y rises? When does the real-estate price p rise? How does utility change when amenities increase?

Answer rating: 100% (QA)

It seems like theres a reference to a previous question or context about demand functions and utilit... View the full answer