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Which of the Following Statements About the Optimal Solution to the Consumer

Question 23

Multiple Choice

Which of the following statements about the optimal solution to the consumer problem based on the Cobb-Douglas utility function is NOT true?


A) The cross-price elasticities of demand are zero.
B) Both goods have downward sloping demand curves.
C) Both goods are normal goods.
D) The marginal utility of income may be negative.

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