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3. We have: indirect utility function v(P1, P2, w) = wpap2 P2 a 1-a minimum expenditure function e(P1, P2, u) = upp Marshallian demand
3. We have: indirect utility function v(P1, P2, w) = wpap2 P2 a 1-a minimum expenditure function e(P1, P2, u) = upp Marshallian demand x (P1, P2, w): aw = P1 Check whether the utility function satisfies the Slutsky Equation h(p,u) ax(p,m) x(p,m) = + -x(p,m)
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
