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3. Consider a firm that produces a single output Q using two inputs, q and 92. The production technology is the Cobb-Douglas: Q = qiqz.

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3. Consider a firm that produces a single output Q using two inputs, q and 92. The production technology is the Cobb-Douglas: Q = qiqz. Let p1 be the price of q1, and p2 be the price of q2. Assume that the price of the output Q is 1. (b) Find the effect of an input price p2 change on the optimal quantity, q, of the input good 2 using the implicit function theorem

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