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| | {{Multiple issues|unreferenced = December 2009|context = November 2009| |
| | {{Underlinked|date=January 2013}} |
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| | '''Leontief utility function,''' first conceptualized by [[Wassily Leontief]], are of the form |
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| | <math>u(x_1,\ldots,x_C)=\min\left\{\frac{x_1}{a_1},\ldots,\frac{x_C}{a_C}\right\}</math>. |
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| | ==Solving for Walrasian–Marshallian demand== |
| | Solving for [[Marshallian demand|Walrasian–Marshallian demand]] is a simple affair with utility functions representing Leontief preferences.<ref>{{cite web|url=http://dirkbergemann.commons.yale.edu/files/lecture_notes-vp-db.pdf|title=Intermediate Micro Lecture Notes|last=|first=|date=21 October 2013|work=Yale University|accessdate=21 October 2013}}</ref> One need only set equal the terms of the min function and solve then w.r.t the income constraint [Income = (p1)*(x1)+ ... + (pn)(xn)] |
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| | ==References== |
| | {{reflist}} |
| | [[Category:Utility]] |
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| | {{econ-theory-stub}} |
Latest revision as of 01:45, 9 January 2013
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Leontief utility function, first conceptualized by Wassily Leontief, are of the form
.
Solving for Walrasian–Marshallian demand
Solving for Walrasian–Marshallian demand is a simple affair with utility functions representing Leontief preferences.[1] One need only set equal the terms of the min function and solve then w.r.t the income constraint [Income = (p1)*(x1)+ ... + (pn)(xn)]
References
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Template:Econ-theory-stub