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:

Asymmetrical Features

Physical attributes where the left and right sides of an object or face are not mirror images, lacking perfect symmetry.

Interpersonal Style

An individual's characteristic way of interacting with others, including behaviors, attitudes, and communication methods.

Companionate Love

A form of love characterized by deep affection, attachment, and commitment, typically found in long-term relationships.

Physiological Desire

An innate biologically-driven urge, such as hunger or thirst, that prompts an individual to fulfill a need.