(a) Derive own-price elasticity of demand (e_ii), income elasticity of demand (h_i) and cross-price elasticity of demand (e_ij) for the Cobb-Douglas Utility Function.

(b) With respect to Cobb Douglas preferences, what happens to the demand for each of two products (x and y) when the price of product y increases, as a result of: (i) the substitution effect; (ii) the income effect; and, (iii) the overall price effect?

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