Economics · Consumer Theory
Choose the correct statement regarding demand functions:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The compensated demand function is homogeneous of degree zero in prices and income.
- 2Income elasticity can be derived for the compensated demand function.
- 3The compensated demand function is homogeneous of degree zero in prices.✓
- 4The demand function for any good is homogeneous of degree zero in prices only.
Correct answer
The compensated demand function is homogeneous of degree zero in prices.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Consumer Theory MCQs →Want more practice questions on Consumer Theory?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Consumer Theory