Economics · Microeconomics
Consider a consumer whose indirect utility function is homogeneous of degree zero in prices and income and strictly quasi-convex in prices. This implies that:
- 1Preferences are homothetic
- 2Expenditure function is concave in prices✓
- 3Marshallian demand satisfies Walras' law
- 4Hicksian demand is homogeneous of degree zero in prices
Correct answer
Expenditure function is concave in prices
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