Calculate the Marshallian demand system. Calculate indirect utility and expenditure function>
Let : (q_1^0,q_2^0)=(1,1)
(q_1^1,q_2^1)= (2, □(1/2))
Calculate the change indirect utility in going from q^0 to q^1.
Calculate the MCS under both paths. What happens if
(1-In 1⁄2)/(In 2)<I<(1-2 In 1⁄2)/(In 2) ?
Calculate the CV and the EV.
Consider third situation (q_1^2,q_2^2)=(3, □(1/3)). Calculate indirect utility and the CV for q^2and compare to q^0.
Calculate 〖CV〗^1 between q^0 and q^1
〖CV〗^2 between q^0 and q^2
Is ∆CV=〖CV〗^2-〖CV〗^1a measure of indirect utility , i.e.: ∆V=V^2-V^1?
Repeat (F) for the EV.
Under (F) and (G), what happens if 18 In 3-12 In 2>I>9 In 3-4 In 2.