The Hicksian welfare measures can be used for the evaluation of any change of state as long as the agent's indirect utility for income is well defined before and after the change. The set of optimal commodity vectors in the EMP is denoted as h(p,u) ⊂ RL+. It is known as the Hicksian or compensated demand corresponding or function if [...]
The utility of x can be written as u(x). It is continuous and strictly increasing on Rn+. There are six properties of the indirect utility function. Such properties are explained along with proof as follows: Property 1: Continuous on Rn++ * R+: Proof: The utility of x, u(x) is a continuous function. There might be the change in the income [...]
In this article we will discuss about the Numan Morgan utility function of consumer preference. Consumer has different choices for clothes, toothpastes, soaps, biscuits, air-tickets, bonds and debentures in their day today life. Sometime such choices are made under uncertainty. Microeconomics is interested in such kind of choice behaviors of individual. For understanding the theorem, we are using the example [...]