Econ

Unlike direct utility function, the Indirect Utility Function takes price as the input.

本质上体现的是,我们研究不在意人具体消费了什么,而是通过改变 or to investigate how they would affect workers’ utility.

We usually formed by , which is also: subject to , and then we could use Lagrangian Multiplier to solve the maximization problem.

and the solution is then Marshallian Demand.