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Read All About It!

Once upon a time in Varian Land, there lived two detectives named Marshallian Demand and Hicksian Demand. The peaceful pages of their kingdom has been interrupted by a murder case - of a prostitute named Ms. Slutsky Equation in Hotelling Lemma Hotel. Currently, the two detectives are having a difficult time on the case because they have very little to work with. For a start, they suspect Mr. Roy's Identity who has some form of personality disorder (he constantly differentiates himself and pretends he's Mr. Marshallian). Then, there's Mr. Shephard's Lemma who is a shepard of llamas in Varian Zoo, who seems totally unrelated to the case but was caught by the hotel's CCTV walking out of Ms. Slutsky's room.


Besides the strange suspects, strange clues were also left behind. A badly scribbled blood-stained handwritten note had the following message:


Changes in price: Luxury good, Necessary good, normal good, inferior good

Changes in income: Giffen good, ordinary good

Remember the expenditure function!

Do not forget the indirect utility function!!

Be warned of the Langrangian!!!



Mr. Marshallian and Mr. Hicksian strongly believe that the murder is affliated to a mafia feud between Xing Xtreme and an undisclosed rival gang for territory. The detectives suspect that the blood-stained note is a warning letter written in code.

The police reassures all Varian citizens that the streets are still safe at night and security has been tightened at Hotelling Lemma Hotel. All citizens' utility remain unchanged and the government urges everyone to continue maximising utility subject to their budget constraint.


Disclaimer: Any similarities to any persons, characters or events, especially Microeconomics Analysis III, is purely coincidental.




min on Friday, May 06, 2005