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Unformatted text preview: Cobb – Douglas ε = 1 (Show) Perfect Substitutes ε = ? Perfect Complements ε = ? INCOME ELASTICITY OF DEMAND Income Elasticity of demand i i i x M M x . ∂ ∂ = η η i > 0 Normal good η i < 0 Inferior good CROSS PRICE ELASTICITY OF DEMAND Cross Price Elasticity of demand i j i i ij x p p x . ∂ ∂ = ε ε ij > 0 Substitutes ε ij < 0 Complements...
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 Spring '11
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 Income Elasticity, Price Elasticity, Supply And Demand, ε ij

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