Consider the following statements: (A) If u(x) = V(b(x)) with V'(.) > 0, then V(x) is a utility function representing the same preference as b(x). (B) If two utility functions represent the same preference, the solutions to the utility-maximization problem are the same but the indirect utility functions are different. (C) If local non-satiation holds, any solution to the utility-maximization problem satisfies the budget constraint with equality. (D) If the indirect utility function of b(x) is homogeneous of degree 0, then the indirect utility of u(x) = V(b(x)) with V'(.) > 0 is homogeneous of degree 1. Choose the correct answer from the options given below:
Tap an option to check your answer.
