A consumer’s indirect utility function is given by v(p, y) = g(p)y. It satisfies all the
required properties of an indirect utility function. Then,
Ag(p) is homogeneous of degree one in prices
Bg(p) is homogeneous of degree zero in prices
Cg(p) is homogeneous of degree minus one in prices
Dg(p)y is homogeneous of degree one in prices and income
required properties of an indirect utility function. Then,
Ag(p) is homogeneous of degree one in prices
Bg(p) is homogeneous of degree zero in prices
Cg(p) is homogeneous of degree minus one in prices
Dg(p)y is homogeneous of degree one in prices and income