If Preferences Are Homothetic and All Prices Double While Income

question 52

True/False

If preferences are homothetic and all prices double while income remains constant, then demand for all goods is halved.

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Definitions:

Cognitive Benefits

Advantages related to brain-based skills and functions, such as improved memory, attention, and problem-solving abilities.

Vision Loss

A decrease in the ability to see to a degree that causes problems not fixable by usual means, such as glasses or contact lenses.

Cognitive Training

A set of exercises designed to improve specific brain functions including memory, attention, and problem-solving skills.

Cognitive Skills

Mental abilities involved in processing information, understanding concepts, solving problems, and making decisions.