Computing Ordinary demands a Cobb-Douglas Example So the mrs is MRS=ua2 QUox ax x6 ax2 dx1 Oula bxayb-1 bx1
Computing Ordinary Demands - a Cobb-Douglas Example. So the MRS is MRS dx dx U x U x ax x bx x ax bx a b a b = = − = − = − − − 2 1 1 2 1 1 2 1 2 1 2 1 / /
Computing Ordinary demands a Cobb-Douglas Example So the mrs is MRS= aX QU/ox a ax dx oU/0x2 bxaxa- bx At(xx2),MRS=_p山p2So (A
Computing Ordinary Demands - a Cobb-Douglas Example. So the MRS is At (x1 *,x2 *), MRS = -p1 /p2 so MRS dx dx U x U x ax x bx x ax bx a b a b = = − = − = − − − 2 1 1 2 1 1 2 1 2 1 2 1 / / . * 2 2 * 1 1 p x p x b a = (A)