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    Microeconomics Theory and Applications
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    Exam 3: A Consumers Constrained Choice
  5. Question
    Show That the Utility Functions V(X,Y)= XᵃY¹⁻ᵃ and U(X,Y)= a Ln(X)
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Show That the Utility Functions V(X,Y)= XᵃY¹⁻ᵃ and U(X,Y)= a Ln(X)

Question 90

Question 90

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:

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ln(V(X,Y))= ln(XᵃY¹⁻ᵃ)= ln(Xᵃ)...

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