Rosalia buys only two goods X₁ and x₂. Her utility function is Cobb-Douglas. Her optimal choices have which of the following properties? One of the goods is an inferior good and the other is a normal good. Her purchase of x₁ depends on her income and on the prices of both goods, p₁ and p2. Her purchase of x₁ does not depend on income. O Her purchases for neither good depends on income. O Her purchase of x2 depends only on her income and on the price of that good, p2.

Rosalia buys only two goods X₁ and x₂. Her utility function is Cobb-Douglas. Her optimal choices have which of the following properties? One of the goods is an inferior good and the other is a normal good. Her purchase of x₁ depends on her income and on the prices of both goods, p₁ and p2. Her purchase of x₁ does not depend on income. O Her purchases for neither good depends on income. O Her purchase of x2 depends only on her income and on the price of that good, p2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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