6.6 Example 6.3 computes the demand functions implied by the three-good CES utility function U (x, y,

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6.6 Example 6.3 computes the demand functions implied by the three-good CES utility function U

(x, y, z) = −

1 x − 1 y − 1 z .

Use the demand function for x in Equation 6.32 to determine whether x and y or x and z are gross substitutes or gross complements.

How would you determine whether x and y or x and z are net substitutes or net complements?

AnALYtiCAL ProBLeMs

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Microeconomic Theory Basic Principles And Extensions

ISBN: 9781473729483

1st Edition

Authors: Christopher M Snyder, Walter Nicholson, Robert B Stewart

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Question Posted: Nov 12, 2024 02:00 AM

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6.6 Example 6.3 computes the demand functions implied by the three-good CES utility function U (x, y,

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Microeconomic Theory Basic Principles And Extensions

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