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Questions › UGC-NET › UGC-NET 2023 › Q43
2 marksMicroeconomics › Demand theory and elasticity › Hicksian demand, the expenditure function and dualityHardabout 2 min

UGC-NET 2023 Question 43: Demand theory and elasticity

Properties of the expenditure function are (in the context of utility theory):

A. Homogeneous of degree one in price, P.

B. Strictly increasing in utility u and non-decreasing in price P for any good.

C. Concave in P.

D. Continuous in P and u.

E. Strictly convex in P.

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Demand theory and elasticity has come up 161 times in 7 exams since 2004.

What this question tests

This question is on Hicksian demand, the expenditure function and duality, part of Demand theory and elasticity in Microeconomics.

Compensated demand, the expenditure and indirect utility functions, and the links between them.

TestStop has 9 past-paper questions on this subtopic.

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