1 suppose kevin has the cobb-douglas utility function ux y
1. Suppose Kevin has the Cobb-Douglas utility function u(x; y) =(x^a)(y^1-a), where 00 and y > 0. His budget constraint is px+y=m.
a) Solve for Kevin's demand function x(p).
b) Explain why his demand curve is decreasing in p.
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1 suppose kevin has the cobb-douglas utility function ux y xay1-a where 0ltalt1nbsp nbspnbspx gt0 and y gtnbsp0 his
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