Re: LOGARITHMIC UTILITY

Posted by Aranya on Jun 07, 2014; 3:43pm
URL: http://discussion-forum.276.s1.nabble.com/LOGARITHMIC-UTILITY-tp7591830p7591856.html

Ans for 2 is utility decreases. You can check that by comparing initial (food,other goods) consumed with new consumption bundle ( i.e. after the change). Find optimal F and other good in each case from the given info.