The Indirect Utility Function for a Consumer with a Utility

question 22

Essay

The indirect utility function for a consumer with a utility function U(x₁, x₂)is defined to be a function V(p₁, p₂, m)such that V(p₁, p₂, m)is the maximum of U(x₁, x₂)subject to the constraint that the consumer can afford (x₁, x₂)at the prices (p₁, p₂)with income m.
a.Find the indirect utility function for someone with the utility function U(x, y)= 2x + y.
b.Find the indirect utility function for someone with the utility function U(x, y)= min{2x, y}.Explain how you got your answers.

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Definitions:

Collaborating

A conflict management style that maximizes both assertiveness and cooperation.

Assertiveness

Assertiveness is the quality of being self-assured and confident without being aggressive, allowing an individual to express their thoughts and defend their rights in a respectful manner.

Cooperation

The process of individuals or groups working together for a common purpose or benefit.

Conflict Management Style

The approach and techniques an individual or group uses to handle disagreements or disputes.