Give separate arguments to support your claims as to their slope, curvature, and the direction of increasing utility
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
© BrainMass Inc. brainmass.com February 24, 2021, 2:19 pm ad1c9bdddfhttps://brainmass.com/economics/utility/price-indifference-curves-13548
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 ...
Solution Summary
This solution provides a detailed explanation of the given economics question.