Which of the following statements about the optimal solution to the co

Which of the following statements about the optimal solution to the consumer problem based on the Cobb-Douglas utility function is NOT true?

A) The cross-price elasticities of demand are zero.
B) Both goods have downward sloping demand curves.
C) Both goods are normal goods.
D) The marginal utility of income may be negative.

 

ANSWER

D

 

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