Lewis has preferences given by the Cobb-Douglas utility function U(q₁,q₂)= q₁ᵃq₂¹⁻ᵃ,where a 0.Show that Lewis's total amount spent on each good,does not change with the prices.

Question

Lewis has preferences given by the Cobb-Douglas utility function U(q₁,q₂)= q₁ᵃq₂¹⁻ᵃ,where a > 0.Show that Lewis's total amount spent on each good,does not change with the prices.

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The Answer of Lewis has preferences given by the Cobb-Douglas utility function U(q₁,q₂)= q₁ᵃq₂¹⁻ᵃ,where a > 0.Show that Lewis's total amount spent on each good,does not change with the prices.

Lewis Has Preferences Given by the Cobb-Douglas Utility Function U(q₁,q₂)=