Which of the following must be true about homothetic tastes:
A. Utility functions that represent those tastes are homogeneous of degree 1.
B. There exists a utility function that represents those tastes and is homogeneous of degree 1.
C. There exists a utility function that represents those tastes such that the expenditure function is homogeneous of degree 1.
D. The indirect utility function is homogeneous of degree zero.
E. Both (a) and (c).
F. Both (b) and (c).
G. Both (b) and (d)
H. None of the above.
Answer: G
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The Packers and Stockyards Act of 1921
A) reinforced antitrust laws regarding livestock marketing. B) established the Packers and Stockyards Administration, still exists today. C) was the principal legislation exempting cooperatives from antitrust laws. D) Both A and C
The cross price elasticity of demand is defined as
A) the percentage change in the supply for one good (a shift in the supply curve) divided by the percentage change in price of a related good. B) the percentage change in demand for two different commodities. C) the percentage change in the demand for one good (a shift in the demand curve) divided by the percentage change in price of a related good. D) the percentage change in price for two different commodities.