# Questions tagged [utility]

Utility, or usefulness, is the (perceived) ability of something to satisfy needs or wants.

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### If both goods are considered economic goods in the economy, then how can their demand be negatively sloped when in a state of satiation or bliss?

if both goods are economic bad, then we can say that they have a negatively sloped demand curve. But how can we say the same for economic goods in a state of satiation or bliss?
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### Infinite derivative at zero bundle

I'm a first year grad student and something we've been using to ensure a maximization problem doesn't admit $0 \in \mathbb R^d$ as a solution is that the derivative (gradient) of the production/...
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### Cobb-Douglas utility function

Why in Cobb-Douglas utility function, the exponents have to sum to one? Can they not be equal to 1 and why?
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### Convex preference and convex utility

What are the differences between convex preferences and covex utility function? Why are convexity preferences usually represented by the quasi-concave function and not the convex function?
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### Example of a utility function with cross-price effects in demand functions

I am looking for examples of utility functions where the demand function for a good does not depend solely on its own price, but on the price of the other good(s) as well. For instance, Cobb-Douglas ...
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### Finding the competitive equilibrium in an exchange economy with two perfect complements

I am currently in a Microeconomics class and have come across the problem described below. I have tried to solve the problem algebraically but only get to the intercept (x1a,x2a)=(8,4). I know that ...
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### Confusion on deriving Walrasian price changes using IFT

I am trying to derive price changes $$\frac{\partial x_1^*(p_1,p_2,w)}{\partial p_1}$$ for Cobb Douglas utility functions $$u(x_1,x_2)=x_1^\alpha x_2^{(1-\alpha)}$$ and I must use the implicit ...
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### Mixed gambles and risk aversion

The 1997 Quarterly Journal of Economics (QJE) paper titled "The Effect of Myopia and Loss Aversion on Risk Taking: An Experimental Test" by Thaler, Tversky, Kahneman and Schwartz, says that ...
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### Substitutable preferences vs. gross substitutes over indivisible items

I don't really have a background in economics. I'm trying to understand the relationship between these two terms, if they are related at all. The definitions that I understand are here: Substitutable ...
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### How do I prove 2 indifference curves have the same properties?

I understand questions a) but I'm completely stumped at c). What do they mean by U'=1 having same properties as U=10?? And w,for questions b and c, what are they asking by "general expression for ...