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QUESTION ONE (a) Highlight the axioms of consumer preference. (b) Distinguish between a good and a bad. (c) Distinguish between the weak axiom of
QUESTION ONE (a) Highlight the axioms of consumer preference. (b) Distinguish between a good and a bad. (c) Distinguish between the weak axiom of revealed preferences and strong axiom of revealed preference. (2mks) (d) Given a Cobb-Douglas utilityfunction of U-x0.5X0.5 Required: (e) (3mks) (2mks) (i) Marshallian demand functions (6mks) (ii) Indirect utility function (3mks) (iii) Expenditure functions (2mks) (iv) Hicksian demand curves (4mks) Illustrate the total change in demand for an inferior good. (3mks)
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1 Highlight the axioms of consumer preference 1 Com ple teness A consumer can compare any two available options and make a preference decision 2 Trans ...
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
