Question: Suppose the utility function satisfies U ( x) = U (x) for all scalars > 0 and at any consumption bundle x, i.e. preferences are

Suppose the utility function satisfies U (x) = U (x) for all scalars > 0 and at any consumption bundle x, i.e. preferences are homothetic.

Show that x(p; m) = mx(p; 1). That is, the demand at (p; m) is m times the what the demand would have if at (p; 1).

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