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The choice of utility function depends on consumer preference which then determines the market behaviour of...

The choice of utility function depends on consumer preference which then determines the market behaviour of the market.
Suppose the utility function of a consumer Cobb-Douglas utility function (CDF)
U(x1, x2) = x13/5x13/5. If p1 = p2 = 2 and I = 14

Question 2 - (30 marks)
Calculate and Illustrate the Income and Substitution Effect when the price of good 1 inctease by 100%
(10 marks)
Calculate the Income Elasticity of Demand for both goods when the income increase by 100% and interpret your result.
(10 marks)
Calculate the Price Elasticity of Demand for both Goods when the price increase by 100% and interpret your result.
(10 marks)

it is trust me, copy and pasted straight from the source, one of your colleagues asked the same thing before they answered #1.

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