Economics Homework Solutions
#12995
Econ Proof/2470
Consider the problems of maximizing u(x) subject to px = y and maximizing v(u(x)) subject to px = y, where v(u) is strictly increasing over the range of u. Prove that x* solves the first problem if and only if it also solves the second problem.
If this proof is in the Mas-Collel text or Varian text, let me know and I can look it up.
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