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Check if the following preferences are homothetic. 1. Perfect substitutes: u(x,y)= ar + By 2. Perfect complements: u(x, y) = min(ax, 3y) 3. CES:
Check if the following preferences are homothetic. 1. Perfect substitutes: u(x,y)= ar + By 2. Perfect complements: u(x, y) = min(ax, 3y) 3. CES: u(x, y) =+where 6 1,60 u(r, y) = Inr+ Iny when 6 = 0 4. Cobb-Douglas: u(x, y) = xy 5. Quasi-linear: u(x, y) = x +lny
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To determine whether the given preferences are homothetic we need to check if the preferences exhibi...
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Linear Algebra And Its Applications
Authors: David Lay, Steven Lay, Judi McDonald
6th Global Edition
978-1292351216, 1292351217
