Consumer Theory [4]: Expenditure Minimization, Sheppard’s Lemma, Duality

Minimization Problem: Just like the utility maximization subject to a given budget constraint, the expenditure minimization is solved as it is subject to a utility constraint. In essence, it is gives the minimal expenditure budget (p1x1+p2x2) that one requires to reach the certain level of utility (uo). As comparison: Moreover, the minimization problem is solved […]