If the Demand for X Is Given By $x = k p _ { x } ^ { - 1.2 } p _ { y } ^ { 0.5 } I ^ { 0.7 }$

Multiple Choice

If the demand for x is given by $x = k p _ { x } ^ { - 1.2 } p _ { y } ^ { 0.5 } I ^ { 0.7 }$ ,which of parameter values hold?

A) $e _ { x , p _ { x } } = 1.2 e _ { x , I } = .7 e _ { y , p _ { x } } = .5$ .
B) $e _ { x , p _ { x } } = - 1.2 e _ { x , p _ { y } } = .5 e _ { x , 1 } = .7$ .
C) $e _ { x , p _ { k } } = - 1.2 \quad e _ { y , p _ { y } } = .7 \quad e _ { x , I } = .5$ .
D) None of these relations hold since the demand function is not homogeneous of degree zero in $p _ { x } , p _ { y } , \text { and I. }$