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Write down the formula for the Slutsky equation in an n-good world Simplifying to the 2-good case, derive the elements in the Slutsky equation when the consumer’s utility function is of the Cobb-Douglas form. What does the matrix of substitution terms in this example tell us about the properties of the expenditure function? What can we say more generally about cross-price elasticities in this example? 最后两问拜托啦!
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