Check if the following preferences are homothetic. 1. Perfect substitutes: u(x,y)= ar + By 2. Perfect...

 

Transcribed Image Text:

Check if the following preferences are homothetic. 1. Perfect substitutes: u(x,y)= ar + By 2. Perfect complements: u(x, y) = min(ax, 3y) 3. CES: u(x, y) =+where 6 1,60 u(r, y) = Inr+ Iny when 6 = 0 4. Cobb-Douglas: u(x, y) = xy 5. Quasi-linear: u(x, y) = x +lny Check if the following preferences are homothetic. 1. Perfect substitutes: u(x,y)= ar + By 2. Perfect complements: u(x, y) = min(ax, 3y) 3. CES: u(x, y) =+where 6 1,60 u(r, y) = Inr+ Iny when 6 = 0 4. Cobb-Douglas: u(x, y) = xy 5. Quasi-linear: u(x, y) = x +lny