Question: Assume that the Hicksian demand function h(p, v) is contimuously differen- tiable for all (p, v). Let D,h(p, v) denote the k x k

Assume that the Hicksian demand function h(p, v) is contimuously differen- tiable

Assume that the Hicksian demand function h(p, v) is contimuously differen- tiable for all (p, v). Let D,h(p, v) denote the k x k substitution matrix of the derivatives of the Hicksian Demand function with respect to the price. In opther words, ah,(p,v) D,h(p, v) = (.) ij-lk Show that, 1 (a) D,h(p, v) is symmetric and negative semi-definite. (b) D,h(p, v) p 0 where 0 is the k x 1 vector of 0's.

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