Consider the following utility function и(х, у) — Зх + 4у a. Is the utility function homothetic? Explain. b. Under what condition will the consumer purchase good x alone?
Consider the following utility function и(х, у) — Зх + 4у a. Is the utility function homothetic? Explain. b. Under what condition will the consumer purchase good x alone?
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.3P
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