Suppose an individual only consumes two goods, X and Y. Which of the following statements is true? O a. Marshallian demand for X and Y are homogenous of degree zero in prices. O b. Indirect utility is homogenous of degree zero in prices. Oc. When X and Y are both normal goods, the consumer has constant expenditure shares for both goods. O d. Marshallian elasticity ep, is more negative than Hicksian elasticity ep. when X is a normal good. Clear my choice

Suppose an individual only consumes two goods, X and Y. Which of the following statements is true? O a. Marshallian demand for X and Y are homogenous of degree zero in prices. O b. Indirect utility is homogenous of degree zero in prices. Oc. When X and Y are both normal goods, the consumer has constant expenditure shares for both goods. O d. Marshallian elasticity ep, is more negative than Hicksian elasticity ep. when X is a normal good. Clear my choice

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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