A consumer has Cobb-Douglas preferences of the form U(x, y) = x3 y2/3. The consumer has an income of $600. Which of the following is true? O a. None of these are true b. They will always spend $200 on good x c. When the price of x goes up they will spend less of their income on x d. When the price of y goes up they will spend more of their income on x O e. All of these are true O O

A consumer has Cobb-Douglas preferences of the form U(x, y) = x3 y2/3. The consumer has an income of $600. Which of the following is true? O a. None of these are true b. They will always spend $200 on good x c. When the price of x goes up they will spend less of their income on x d. When the price of y goes up they will spend more of their income on x O e. All of these are true O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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