題組內容

1. The majority of the study of economics in general consists of solving constrained op- timization problems. In microeconomics, usually a consumer is assumed to be with a set of preferences which can be represented by a utility function. This utility function "measures" how happy she is at any level of consumption of the goods that provide her with satisfaction.

(b) u(p1, p2,w), the indirect utility function, gives Crystal's maximal attain-able utility when faced with (Pi, P2), the vector of goods prices, and w, the amount of income:
(p1,p2,W) =u[x1(p1,p2,W),x2(p1,p2,w)].
Write down the indirect utility function of Crystal. That is, plug in your answers of (a) into the quasi-linear utility function.