題組內容

I Long Questions 
 1. Consider the following maximization problem:
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 where and are positive and add up to unity (Cobb-Douglas utility)； p1 and p2 are the prices of good 1 and good 2, respectively；M   is income.

d. What happens to the demand for good 1 as the price of good 1 increases? What happens if the price of good 2 increases? Are goods 1 and 2 gross complements or gross substitutes?