Consider the following indirect utility function: V(p, 1) = II ₁(ail Jai Pi where 1 ai = 1, and ai #0, Vi 1. What's the demand function for x? (Hint: Take logarithm to both sides of the equation) 2. What's the original utility function? (Hint: If n is too abstract, let n = 2)

Consider the following indirect utility function: V(p, 1) = II ₁(ail Jai Pi where 1 ai = 1, and ai #0, Vi 1. What's the demand function for x? (Hint: Take logarithm to both sides of the equation) 2. What's the original utility function? (Hint: If n is too abstract, let n = 2)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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