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Consider the Following Three Concepts

Question 7

Multiple Choice

Consider the following three concepts:
I. Marshallian Demand [x = x(px,,py ,I) ]
II. Indirect Utility [V = g (px,,py ,I) ]
III.Compensated Demand [x = xc (px,,py ,U) ]
Which of these functions is necessarily homogeneous of degree zero in all its argument?


A) All of them.
B) None of them.
C) Only I.
D) I and III,but not II.

Correct Answer:

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