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3

Demand is positive, so $A>0$. If $p_1$ goes to $\infty$, $x_1$ has to go to 0, since $p_1x_1$ is bounded by $M$. Thus $\alpha < 0$. If $p_2$ goes to 0, $x_1$ cannot go to $\infty$, since $p_1x_1$ is bounded by $M$. Thus $\beta\ge 0$. If $M$ goes to 0, $x_1$ has to go to 0, since $p_1x_1$ is bounded by $M$. Thus $\gamma > 0$. If both prices and ...


0

K is just a stock of capital. This Fed data show that the stock of US capital is almost 70m at constant prices for the most recent year (2019). But there are other ways of measuring it. You can google papers that estimate multifactor productivity to see what measures for K and N people are using (not everyone uses labor hours too). A is multifactor ...


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