Re: LOGARITHMIC UTILITY

Posted by Homer Simpson on Jun 07, 2014; 3:48pm
URL: http://discussion-forum.276.s1.nabble.com/LOGARITHMIC-UTILITY-tp7591830p7591861.html

Sorry calculation mistake ho gaya!

F = 0.25Y
1.10F' = 0.25Y' (Exp of F with new prices and income)

and Y' = 1.03Y

=> 1.10F' = (1.03x0.25)Y

Thats how i got F'