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. Suppose an individual has preferences over x and y, and both goods are normal goods for the individual. Demand is homogeneous of degree 0 in prices and income. Which of the following elasticities and expenditure share sä can possibly be true? (a) €x,px = : −0.4, €x,py = 0.2, €x,1 = 1, sx = 0.2, €y,1 = 1 (b) €x,px = = −0.8, €x,py = 1, €x,1 = −0.2, sx = 0.2, €y,1 = 1 (c) €x,px 0.2, €x,1 = 1, Sx = 0.2, €y,I ² = 1 (d) €x,pr (e) None of them = -1.2, €x,py = = : 0.2, €x,py = 0.2, €x,1 = 0.5, 8x = 0.2, €y,1 = 1

. Suppose an individual has preferences over x and y, and both goods are normal goods for the individual. Demand is homogeneous of degree 0 in prices and income. Which of the following elasticities and expenditure share sä can possibly be true? (a) €x,px = : −0.4, €x,py = 0.2, €x,1 = 1, sx = 0.2, €y,1 = 1 (b) €x,px = = −0.8, €x,py = 1, €x,1 = −0.2, sx = 0.2, €y,1 = 1 (c) €x,px 0.2, €x,1 = 1, Sx = 0.2, €y,I ² = 1 (d) €x,pr (e) None of them = -1.2, €x,py = = : 0.2, €x,py = 0.2, €x,1 = 0.5, 8x = 0.2, €y,1 = 1

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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5. Suppose an individual has preferences over x and y, and both goods are normal goods for the individual. Demand is homogeneous of degree 0 in prices and income. Which of the following elasticities and expenditure share sæ can possibly be true? (a) €x,px (b) €x,pr (c) €x,px = -1.2, €x,py (d) €x,px (e) None of them = -0.4, €x,py = 0.2, €x,1 = 1, 8x = 0.2, -0.8, €x,py = 1, €x,I = = = 0.2, €x,I = Ey, I 1 -0.2, sx = 0.2, €y,1 = 1 1, Sx = 0.2, €y,I = = = 0.2, €x,py = 0.2, €x,1 = 0.5, 8x = 0.2, €y,I = = 1 = 1
Transcribed Image Text:5. Suppose an individual has preferences over x and y, and both goods are normal goods for the individual. Demand is homogeneous of degree 0 in prices and income. Which of the following elasticities and expenditure share sæ can possibly be true? (a) €x,px (b) €x,pr (c) €x,px = -1.2, €x,py (d) €x,px (e) None of them = -0.4, €x,py = 0.2, €x,1 = 1, 8x = 0.2, -0.8, €x,py = 1, €x,I = = = 0.2, €x,I = Ey, I 1 -0.2, sx = 0.2, €y,1 = 1 1, Sx = 0.2, €y,I = = = 0.2, €x,py = 0.2, €x,1 = 0.5, 8x = 0.2, €y,I = = 1 = 1
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