homeworkI know that by Roy’s identity, the Marshallian demand for a good (i) is $x^*_i = -\frac{V_i}{V_y}$, where $V(Y,P)$ is the indirect utility function, $V_i=\frac{\partial V}{\partial P_i}$, and $V_y=\frac{\partial V}{\partial Y} $.
I also know that a monotonic increasing transformation means strictly increasing. How do I go about proving that Roy’s identity holds if the utility function is subjected to a monotonic increasing transformation?
I have shown that Roy’s identity holds, but without the “montonic increasing transformation” condition. How do I put it in?
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