Question

In: Economics

1. A) If the consumer is consuming exactly two goods, and she is always spending all...

1. A) If the consumer is consuming exactly two goods, and she is always spending all of her money, can both of them be inferior goods?

B) Show that perfect substitutes are an example of homothetic preferences.

C) Show that Cobb-Douglas preferences are homothetic preferences.

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Expert Solution

Rahul Sunny answered 1 year ago
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