For the Cobb-Douglas utility function: the income and substitution effects are necessarily the same size. there is only an income effect, no substitution effect. there is only a substitution effect, no income effect. O the demand for each good is independent of changes in the price of the other good.

For the Cobb-Douglas utility function: the income and substitution effects are necessarily the same size. there is only an income effect, no substitution effect. there is only a substitution effect, no income effect. O the demand for each good is independent of changes in the price of the other good.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 15SQ

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