Question
A consumer's indirect utilityfunction is given by V(p,y)= (p1)^a(p2)^b(y)^c where p1, p2, and y are prices and income, and a, b and c are parameters.
A consumer's indirect utilityfunction is given by V(p,y)= (p1)^a(p2)^b(y)^c where p1, p2, and y are prices and income, and a, b and c are parameters. Which restrictions should the parameters satisfy in order for V(P,y) to be increasing in income, decreasing in prices and linear homogeneous in prices and income?
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Organizational Behavior And Management
Authors: John Ivancevich, Michael Matteson
6th Edition
0072436387, 978-0072436389
