Solved

For the Cobb-Douglas Utility Function

Question 139

Multiple Choice

For the Cobb-Douglas utility function:


A) the income and substitution effects are necessarily the same size.
B) the demand for each good is independent of changes in the price of the other good.
C) there is only an income effect, no substitution effect.
D) there is only a substitution effect, no income effect.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions