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(4) Show that if the utility function is changed to the Cobb-Douglas case u(C1, C2) = C1 1+ A C2 1+ A , then the

(4) Show that if the utility function is changed to the Cobb-Douglas case u(C1, C2) = C1 1+ A C2 1+ A , then the optimal ci and c2 are the same as in #3. (Hint: No need to re-derive the demand functions here. A few sentences explanation should suffice.) (5 pts.)

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