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

question 12

Multiple Choice

With the Cobb-Douglas utility function $U ( x , y ) = \sqrt { x y }$ ,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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Definitions:

Lauric Acid

A saturated fatty acid with a 12-carbon atom chain, commonly found in coconut oil and palm kernel oil, used in soap production and other industries.

Myristic Acid

A saturated 14-carbon fatty acid, also known as tetradecanoic acid, common in animal and vegetable fats.

Palmitic Acid

A saturated fatty acid found in fats and waxes including olive oil, palm oil, and body lipids, known scientifically as hexadecanoic acid.

Stearic Acid

A saturated fatty acid found in various animal and plant fats, used in the manufacturing of detergents, soaps, and cosmetics.