Are functions homogeneous in income and prices

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Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y).

a. Derive his demand functions for x and y. Are they homogeneous in income and prices?

b. Assuming I = $60 and px = $1, graph his demand curve for y.

c. Repeat part (b) for the case in which px = $2.

Reference no: EM13207573

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