A microeco - University of Tabriz Department of Economics...

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Unformatted text preview: University of Tabriz Department of Economics Advanced Microeconomics Assignment 1 Due date: Tuesday 1389/8/16 Instructor: Fallahi 1. In a world with two commodities, consider a consumers preferences that are represented by the utility function u ( ? 1 , ? 2 ) = min { ? 1 , ? 2 }. a. Calculate the consumers demand function. b. Calculate the indirect utility function v(p , y) . c. Verify Roys Equality. d. Calculate the expenditure function e(p , u) and verify Dual Roys Equality. 2. Show the lexicographical preference in a graph, assuming that only 2 goods exist. Does this type of preference be represented any a utility function? 3. Define a Homothetic utility function? 4. For each of the following, derive Marshallian demand, Hicksian demand and indirect unility function using the standard budget constraint 1 + 2 ? 2 = ? . U( ? 1 , ? 2 ) = max( ? 1 , ? 2 ) U( ? 1 , ?...
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A microeco - University of Tabriz Department of Economics...

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