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A buyer has Cobb-Douglas preferences such that mrs = 22. He starts with 3 units of good 1 and $50. Use this information to
A buyer has Cobb-Douglas preferences such that mrs = 22. He starts with 3 units of good 1 and $50. Use this information to answer the following questions. (a) Find an expression for this consumer's net demand for good 1 (i.e. how many more units he will buy given price p). (b) Sketch this demand curve. (Make sure you label the axes and put p on the vertical axis.)
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To find the expression for the consumers net demand for good 1 we need to use the marginal rate of s...
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Auditing A Practical Approach
Authors: Robyn Moroney
1st Canadian Edition
978-1118472972, 1118472977, 978-1742165943
