Expenditure Function
Formally, the expenditure function is defined as follows. Suppose the consumer has a utility function defined on commodities. Then the consumer's expenditure function gives the amount of money required to buy a package of commodities at given prices that give utility of at least ,
where
is the set of all packages that give utility at least as good as .
Read more about this topic: Expenditure Minimization Problem
Famous quotes containing the words expenditure and/or function:
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