Shephard's Lemma

Shephards lemma is a major result in microeconomics having

applications in consumer choice and the theory of the firm.

 Shephards Lemma

Shephards lemma states that if indifference curves of the

expenditure or cost function are convex, then the cost
minimizing point of a given good (X) with price (P X) is
unique. The idea is that a consumer will buy a unique
ideal amount of each item to minimize the price for
obtaining a certain level of utility given the price of goods
in the market. It was named after Ronald Shephard who
gave a proof using the distance formula in a paper
published in 1953, although it was already used by John
Hicks (1939) and Paul Samuelson (1947).
Sources: Wikipedia, http://dictionary.sensagent/shephards+lemma/en-en/
 Shephards Lemma

Shephards lemma gives a precise formulation for

the demand for each good in the market with
respect to that level of utility and those prices: the
derivative of the expenditure function E(PX, PY, U)
with respect to that price.
E
= X = hX (V ,PX ,PY )
PX