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 theory of revealed preference allows us to use information about consumer choices to inter how the consumer must rank bundles if he is maximizing utility with budget constraints. Alternatively, the revealed preference model explains that how the consumer spends his income with given prices of different commodities. The change in price allows consumer to buy of more or less [...]
Read this article in Hindi to learn about the main principles of Engel’s law and Engel’s curve, with the help of suitable diagrams. जर्मन अर्थशास्त्री अर्नस्ट एंजिल (Ernst Engel) ने पारिवारिक बजटों का अध्ययन किया और उनके प्राप्त निष्कर्षों के आधार पर एक नियम प्रस्तुत किया जिसे एंजिल का उपभोग नियम (Engel's Law of Consumption) कहा जाता है । इस [...]