The CES utility function we have used in this chapter is given ... | Filo
The CES utility function we have used in this chapter is given ... | Filo
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Example 6.3 computes the demand functions implied by the three-good CES utility function U(X, Y, Z)=-(1)/(X)-(1)/(Y)-(1)/(Z). a. Use the demand function for X in Equation 6.28 to determine whether X and Y or X and Z are gross substitutes or gross complements. b. How would you determine whether X and Y or X and Z are net substitutes or net complements? | Numerade
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