6. Show that the constant-elasticity-of-substitution (CES) function is homogenous of degree U. f(x,y) = (x +...

Question

Question

6. Show that the constant-elasticity-of-substitution (CES) function is homogenous of degree U. f(x,y) = (x + y) (v/p)

Answer 1

Answer #1

Answer-6 is a homogenous of Degree in A function if; f(tx, ty) = tf(x,y) Here f(2.4) = (éry, = f (ER, ty) = ( (tx) + (ty) ) 2

Answer 2

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