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Business, 25.02.2020 17:00 kaylesparks2

A utility function is homothetic if any straight line through the origin cuts all indifference curves at points of equal slope: The MRS depends on the ratio y/x.
Prove that if an individual’s tastes can be represented by a homothetic indifference map then price and quantity must move in opposite directions; that is, prove that Giffen’s paradox cannot occur.

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A utility function is homothetic if any straight line through the origin cuts all indifference curve...
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