Cobb Douglas Function – Demand Theory
In the past installments from DiscussEconomics on demand theory, now we’re venturing into the graphical and mathematical expressions of the Cobb Douglas demand function. Graphically expressed (utility maximizing) with the assumption well-behaved preferences. The interior solution characterized by two statements (the equals sign is really supposed to be three lines thus ‘is equal to): 1. … Continue reading Cobb Douglas Function – Demand Theory