5.3 As defined in Chapter 3, a utility function is homothetic if any straight line through the...

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5.3 As defined in Chapter 3, a utility function is homothetic if any straight line through the origin cuts all indifference curves at points of equal slope: the MRS depends on the ratio y/x.

Prove that, in this case, ∂x/∂I is constant.

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Microeconomic Theory Basic Principles And Extensions

ISBN: 9781473729483

1st Edition

Authors: Christopher M Snyder, Walter Nicholson, Robert B Stewart

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Question Posted: Nov 12, 2024 02:00 AM

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5.3 As defined in Chapter 3, a utility function is homothetic if any straight line through the...

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Microeconomic Theory Basic Principles And Extensions

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