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Topic: 2.2 / 2.5 / 2.9
Conf: Chapter 2, Topics in Consumer Theory, Msg: 15204
From: Martin Caley (martin.caley@economics.treasury.gov.im)
Date: 2/28/2005 10:50 AM
2.2 / 2.5 / 2.9 Martin Caley MCaley martin.caley@economics.treasury.gov.im
For Exercise 2.2, (BB) implies p.x = y and (H) implies p.dxi/dp + y.dxi/dy = 0 where p is a vector. The Slutsky equation gives sij = dxi/dpj + xj.dxi/dy. Multiply through by pj, sum over j and use (BB) and (H).
A solution to Exercise 2.9 can be found under 'Solutions to selected exercises' posted on 12/8/2000.