In the case of homothetic preferences, the entire change in demand from a price change is due to the substitution effect.

Name: In the case of homothetic preferences, the entire change in demand from a price change is due to the substitution effect.
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In the case of homothetic preferences, both income and substitution effects influence the change in demand following a price change, but the income effect is proportional across income levels, maintaining constant expenditure shares.

In the Case of Homothetic Preferences, the Entire Change in Demand