Demand Functions Are "Homogeneous of Degree Zero in All Prices

question 36

Multiple Choice

Demand functions are "homogeneous of degree zero in all prices and income." This means

• A)a proportional increase in all prices and income will leave quantities demanded unchanged.
• B)a doubling of all prices will not alter consumption decisions.
• C)prices directly enter individuals' utility functions.
• D)an increase in income will cause all quantities demanded to increase proportionately.

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Definitions:

Psychoanalytic Therapy

A therapeutic approach developed by Freud that aims to explore unconscious conflicts and emotional issues from one's past.

Working Through

A concept in psychotherapy that involves the process of repeatedly discussing and analyzing issues, leading to resolution and personal growth.

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Client-centered

Client-centered is an approach in psychotherapy and counseling that focuses on the client's perspective and inherent ability for growth, emphasizing empathy, unconditional positive regard, and genuineness in the therapeutic relationship.