For the Cobb-Douglas utility function with two goods, the sum of the own price elasticities of demand must be:
a. 0.
b. -1.
c. -2.
d. any number between 0 and -4.
c
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
The U.S. experience during the 1980s and 1990s illustrates that
a. fiscal policy is substantially more potent than monetary policy. b. a balanced budget is essential for the achievement of price stability. c. a monetary policy that keeps the inflation rate low and steady will help promote economic stability. d. there is a trade-off between inflation and unemployment-the unemployment rate can be reduced if we are willing to tolerate higher rates of inflation.
Which of the following statements about the gender gap in income is correct?
A. The typical woman in the U.S. earns about 75% as much as the typical man. B. In higher education, women are under-represented in more lucrative majors such as physics and chemistry. C. Gender discrimination against women resulted in an excess supply of female workers in female-dominated occupations. D. All of these
The "high-tech revolution" grew out of many tiny start-up operations. This is an argument that more technological change occurs in ________ market structures.
A. oligopolistic B. monopoly C. more competitive D. duopoly