How to derive utility function from expenditure function

We have the expenditure function Let Po x =2, P y =1and B =40.From(6)wefind that U0 = 200. 2CVandEVforaPriceFall Suppose the price of x were to fall to PN x =1. The consumer’s utility becomes B2 4P xP y = (40)2 4(1)(1) =400=U N The budget necessary to achieve the original utility (U0 =200) is found from the the expenditure function (7) (4PN ...

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