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Which of the Following Demand Functions Is Not Homogenous of Degree

Question 10

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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