LOGARITHMIC UTILITY
Posted by Tanu_Jaiswal on Jun 07, 2014; 2:43pm
URL: http://discussion-forum.276.s1.nabble.com/LOGARITHMIC-UTILITY-tp7591830.html
Please help me with the following questions :
1)Does the utility function U=Log X show diminishing Marginal utility ??
2)A consumer spend 1/4th of his income on food. Price of food rises by 10% while his income rises by 3%. The consumer's utility rises/ falls/ remains same/ cannot say ?
3) If Q= aP^ alpha. Y^ gamma , where Q is quantity demanded,
then Price elasticity of demand is equal to Alpha or what ?
URL: http://discussion-forum.276.s1.nabble.com/LOGARITHMIC-UTILITY-tp7591830.html
Please help me with the following questions :
1)Does the utility function U=Log X show diminishing Marginal utility ??
2)A consumer spend 1/4th of his income on food. Price of food rises by 10% while his income rises by 3%. The consumer's utility rises/ falls/ remains same/ cannot say ?
3) If Q= aP^ alpha. Y^ gamma , where Q is quantity demanded,
then Price elasticity of demand is equal to Alpha or what ?
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