Question
Consider the following Cobb-Douglas utility function u(x1, x2) = x a 1x b 2 which we would like to maximize subject to the following budget
Consider the following Cobb-Douglas utility function u(x1, x2) = x a 1x b 2 which we would like to maximize subject to the following budget constraint m = p1x1 + p2x2 Find the consumer's optimal choices of x1 and x2 (Marshallian demands).
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
