Purchase Solution

Give separate arguments to support your claims as to their slope, curvature, and the direction of increasing utility

Not what you're looking for?

Ask Custom Question

In the two good case, the level sets of the indirect utility fuction in the price space are sets of the form

{(p1,p2) 'vertical line' v(p1,p2,y) = v0} for when v0 is an element in the set of real numbers

These are sometimes called price-indifference curves. Sketch a possible map of price-indifference curves. Give separate arguments to support your claims as to their slope, curvature, and the direction of increasing utility

note: I don't have the equation editor so where it says 'vertical line', there is a vertical line in the equation

Purchase this Solution

Solution Summary

This solution provides a detailed explanation of the given economics question.

Solution Preview

** Please see the attached file for the complete solution response **

In the two good case, the level sets of the indirect utility function in the price space are sets of the form

{(p1,p2) | v(p1,p2,y) = v0} for when v0 is an element in ...

Purchase this Solution


Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.