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With the Cobb-Douglas Utility Function U(x,y)=xyU ( x , y ) = \sqrt { x y }

Question 3

Multiple Choice

With the Cobb-Douglas utility function U(x,y) =xyU ( x , y ) = \sqrt { x y } ,x and y are


A) net and gross substitutes.
B) net substitutes and gross complements.
C) net substitutes and neither gross substitutes or complements.
D) net and gross complements.

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