True-False Questions1. If e*(p,U) be the value function for theexpenditure minimization problem, and v*(p,M) be the value function for the utilitymaximization problem. Then by duality, v*(p,e*(p,U))=M.2. Let x* is the ordinary (Marshallian) demandfunction for the vector of consumption goods,and preferences are strictly monotonic, thenx* is the demand function that solves theexpenditure minimization problem at fixedutility level U= value function e*(p,U).3. In the Slutsky equation, the Substitutioneffect with respect to an "own-price" changeis always negative.4. If preferences are strictly convex and strictlymonotonic, then necessarily ordinary demandchoices are unique.5. If preferences are convex, then ordinarydemand function cannot be unique at anyprice-income pairs.

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True-False Questions 1. If e*(p,U) be the value function for the expenditure minimization problem, and v* (p,M) be the value function for the utility maximization problem. Then by duality, v* (p,e*(p,U))=M."

True-False Questions 1. If e(p,U) be the value function for the expenditure minimization problem, and v (p,M) be the value function for the utility maximization problem. Then by duality, v* (p,e*(p,U))=M."

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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