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Results tagged with consumer-theory
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user 25670
the study of consumer choice and its fundamental underpinnings in preferences and constraints.
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Cobb-Douglas function homotheticity
I've been given the Cobb-Douglas utility function:
$\ u(q_1, q_2)=a\ln q_1+b\ln q_2=q_1^aq_2^b \ $
If I want to prove homothetic preferences, I use the following condition:
$\ u(\lambda q_1, \lamb …
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