Homothetic utility function


Rohan's preferences can be represented by a strictly increasing, strictly quasiconcave, and homothetic utility function.

(a) To show that the own-price elasticity of Rohan's Marshallian demand for any good is independent of his income.

(b) To show that the income elasticity of his Marshallian demand for any good is equal to 1.

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Homothetic utility function
Reference No:- TGS066546

Expected delivery within 24 Hours