If Tastes Are Homothetic, There Exists a Utility Function That

question 24

True/False

If tastes are homothetic, there exists a utility function that represents those tastes and that gives rise to an expenditure function which is homogeneous of degree 1 in utility.

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Definitions:

Synergistic Interaction

A situation where two or more substances or organisms work together to produce a combined effect greater than the sum of their separate effects.

Homeostatic Interaction

The process by which biological systems maintain stability and equilibrium within their internal environment despite external changes.

Positive Feedback

A process in which the output or result of an action enhances or amplifies the original action.

Synergistic Interaction

A phenomenon where combined actions of different elements produce an effect greater than the sum of their separate effects.