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Unformatted text preview: P ( p , w ) , then there exists an x such that px px and u ( x ) > u ( x ) u . By continuity, for some nonnegative vector 6= 0, x is a bundle such that u ( x ) > u and p ( x ) < px , contradicting the assumption that x is a solution to D ( p , u ) . The Hicksian Demand Function Assume that the dual problem D ( p , u ) has a unique solution. This is the case, for example, if u represents strictly convex continuous preferences. The Hicksian demand function h ( p , u ) is the solution to D ( p , u ) . This concept is analogous to the demand function in the prime problem....
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This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.
- Fall '10