how to solve for 1.57 Martin Caley MCaley martin.caley@economics.treasury.gov.im

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Topic: how to solve for 1.57
Conf: Chapter 1, Consumer Theory, Msg: 13534
From: Martin Caley (martin.caley@economics.treasury.gov.im)
Date: 10/27/2003 09:16 AM

how to solve for 1.57 Martin Caley MCaley martin.caley@economics.treasury.gov.im Substitute y=e(p,u) and v(p,y)=u and re-arrange to get v(p,y)=a*(p)+b*(p)y then use Roy's Identity. You will find that a*(p)=-a(p)/b(p) and b*(p)=1/b(p) but don't bother working out the partial derivatives in terms of a(p) and b(p).
Terence Gorman was my supervisor at LSE.