Consider the utility function 

U = x y^β,   > 0, β > 0 which is to be maximized subject to the budget constraint m = p_x x + p_y y where m = income (nominal) and Px and Py are the prices respectively per unit of the goods X and Y.

Derive the demand function for X and Y. Show that these demand functions are homogeneous of degree zero in prices and income. (100 words) (6 Marks)