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Which of the Following Demand Functions Is Not Homogenous of Degree

Question 9

Multiple Choice

Which of the following demand functions is not homogenous of degree zero in px ,py ,and I?


A) x = I / (px,+ py ) .
B) x=I.5px03py0.2x = I ^ { .5 } p _ { x } ^ { - 03 } p _ { y } ^ { - 0.2 } .
C) x=Ipy/px2x = I p _ { y } / p _ { x } ^ { 2 } .
D) x=Ipy/pxx = I p _ { y } / p _ { x } .

Correct Answer:

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