ENADE Ciências Econômicas Practice Questions - ENADE Ciências Econômicas - Exame Nacional De Desempenho Dos Estudantes Exam

Access More Questions

Let $V(p_1, p_2, I)$ be the indirect utility function of a rational consumer facing strictly positive prices and income. According to Roy's Identity, how is the Marshallian demand for good $i$, $x_i(p, I)$, derived from $V(p, I)$?

$$x_i(p, I) = -\frac{\partial V(p, I) / \partial I}{\partial V(p, I) / \partial p_i}$ $$x_i(p, I) = \frac{\partial E(p, u) / \partial u}{\partial E(p, u) / \partial p_i}$ $$x_i(p, I) = \frac{\partial V(p, I) / \partial p_i}{\partial V(p, I) / \partial I}$ $$x_i(p, I) = -\frac{\partial V(p, I) / \partial p_i}{\partial V(p, I) / \partial I}$

Correct Answer:

$$x_i(p, I) = -\frac{\partial V(p, I) / \partial p_i}{\partial V(p, I) / \partial I}$

Access more questions from this quiz

Continue to ENADE Ciências Econômicas Practice Questions - ENADE Ciências Econômicas - Exame Nacional de Desempenho dos Estudantes Exam for more practice questions and the full quiz experience.

Access More Questions