Question: Suppose L = 3 , and consider the demand function x ( p , w ) dened by x 1 ( p , w )
Suppose L and consider the demand function xp w dened by xp w p ppp w p xp w p ppp w p xp w p ppp w pa Does this demand function satisfy homogeneity of degree zero and Walras' law when What about when in b Assume and w Compute the substitution matrix. Show that at p it is negative semidenite but not symmetric. c Show that this demand function does not satisfy the weak axiom.
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