Tricky question: Suppose that the consumer's indirect utility function is given by: v(p, y) = y/(apı...

Question

Question

Tricky question: Suppose that the consumers indirect utility function is given by: v(p, y) = y/(apı + Bp2), where P1, P2 and

Answer 1

Answer #1

Let U= Min (Xila, X21B) then at Eqm Xi la=X2|ß BX1=XX2 from BC Pixit P2X2= y Pi XX2 + P2 X 2 = y X 2 = Xz (& P1+ BP2) = By By

Answer 2

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