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Topic: Exercise 2.24
Conf: Chapter 2, Topics in Consumer Theory, Msg: 13493
From: Martin Caley (martin.caley@economics.treasury.gov.im)
Date: 10/14/2003 04:22 AM
Exercise 2.24 Martin Caley MCaley martin.caley@economics.treasury.gov.im
U:[0,b)-> [-b^c,0) as U takes real values. If U'>0 and U''<0, then c > 1.
R(w)=(c-1)/(b-w).
R'(w)=(c-1)/(b-w)^2=(-U'')/(U'(b-w))>0 for c>1.