Essay
Show that the utility functions V(X,Y)= XᵃY¹⁻ᵃ and U(X,Y)= a ln(X)+ (1-a)ln(Y)represent the same ordering of bundles.
Correct Answer:

Verified
ln(V(X,Y))= ln(XᵃY¹⁻ᵃ)= ln(Xᵃ)...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q13: The assumption of completeness means that<br>A)the consumer
Q22: The slope of the budget line represents
Q31: If the prices of both goods and
Q40: Amanda consumes only two goods,X and Y.Her
Q47: A consumer's budget line for food (F)and
Q52: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6808/.jpg" alt=" -Max has allocated
Q54: Utility is the set of numerical values
Q63: The fact that consumers often react more
Q92: If two goods,"x" and "y",are perfect substitutes,then
Q122: Explain why most indifference curves are convex.