Asuming 0 a y to the utility maximization problem max x


Question: (a) Assuming 0 ≤ a, y) to the utility maximization problem max x + a ln y subject to px + qy = m

(b) Find the indirect utility function U∗(p, q, m, a) = x + ln y, and compute its partial derivatives w.r.t. p, q, m, and a. Verify the envelope theorem (7).

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Mathematics: Asuming 0 a y to the utility maximization problem max x
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