Utility maximization
8 important questions on Utility maximization
What is the slope of the budgetconstraint?
How can you maximize the utilization?
What is the invidual's expenditure function?
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
What does the V function mean?
optimal level of utility depends indirectly on prices and income
What is Engel's law?
CES utility function and Share equation
What is the income effect?
When is a good an inferrior good?
What is the income expansion path?
It does not have to be lineair
Does nog have to be positive sloped
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding