I'm not sure how fast you can comment back, but could you use the Cobb Douglas function to skip finding MUx and MUy. Therefore MUx would equal .5y and MUy would equal.5x ?
It's much longer to do. This way, you can speed up the process to yield the same outcome. It's particularly useful in an exam context where time is sometimes the most valuable currency.
Beware. He made mistake at the end in x and y boxes. he just switched them both instead of dividing. answer should be x = U/(pxpy)^1/2 and y accordingly.
The expenditure function is derived correctly. You can double check that the expenditure function is correct by doing a utility optimization problem. Let the price of each good $1 and income = $100. The consumer would buy 50 units of each good, giving the consumer utility equal to 50 or U = 50. Evaluate the expenditure function at U = 50 and price of each good at $1:M = 2[(PxPy)^0.5)]U. The necessary income to get U = 50 with these prices is $100--the expenditure function is correct.
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Exactly what I was looking for. Thanks ! And yes, you're my first source to look up numerical-based approach or derivations.
THANK U IT IS QUIT SIMPLE AND PRECISE. PLEASE ADD THE OTHER UTILITY FUNCTIONS FOR FURTHER EXPLANATIONS.
Thank you very much, can you also give some ideas on the properties of expenditure function
Really helpful. Found you 30 min ago and I am already a fan :)))
P.S. Maybe you should explain a little bit more the concepts themselves.
Success
what's the main difference if compared to the Indirect Utility Function? calculations seemed practically the same
Thank you for explaining. Really helpful.
Thank you very much for sharing the knowledge. Merci beaucoup.
YOU ARE THE BEST, THANKS A LOT
you are the man thank you very much
plx sir explain how you multiplyed and cancel the squre root
Saved, thanks so much!
how did you find marshallian utility function for x and y?
Really helped a lot❤️
SO helpful!!! Thank you!
What if x and y are to power 4 how can we solve it plz
I'm not sure how fast you can comment back, but could you use the Cobb Douglas function to skip finding MUx and MUy. Therefore MUx would equal .5y and MUy would equal.5x ?
Abi efsane anlatıyorsun senin sayende öğrendim
nice video! can you tell me how to get the INDIRECT UTILITY from this expenditure fn?
obviously, given that i do not know the utility fn....
Why don't you do it with the Lagrangian function?
Mr Milanov langrange will lead u to get Engel curve, which is again utility optimisation. but here it is expenditure minimization.
It's much longer to do. This way, you can speed up the process to yield the same outcome. It's particularly useful in an exam context where time is sometimes the most valuable currency.
How to splve (1/3x+1/3y)1/2
how does learning this help you in every day life?
excellent
Beware. He made mistake at the end in x and y boxes. he just switched them both instead of dividing. answer should be x = U/(pxpy)^1/2 and y accordingly.
The expenditure function is derived correctly. You can double check that the expenditure function is correct by doing a utility optimization problem. Let the price of each good $1 and income = $100. The consumer would buy 50 units of each good, giving the consumer utility equal to 50 or U = 50. Evaluate the expenditure function at U = 50 and price of each good at $1:M = 2[(PxPy)^0.5)]U. The necessary income to get U = 50 with these prices is $100--the expenditure function is correct.
Hello plz answer me
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