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Suppose an invidvidual has Cobb-Douglas preferences over bundles of goods x and y, and that the share of her income she spends on good x
Suppose an invidvidual has Cobb-Douglas preferences over bundles of goods x and y, and that the share of her income she spends on good x is a fraction . She has $10, and the price of good x is denoted p and that of good y is fixed at $1.
-Suppose the price of x is $2, how much of each good does she purchase?
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