a) Applying illustration where necessary show how the preferences for perfect substitutes, perfect complements and Cobb-Douglas...

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a) Applying illustration where necessary show how the preferences for perfect substitutes, perfect complements and Cobb-Douglas behaviour. b) Using the Pamela Cobb-Douglas utility function xx facing a budget constraint of 20 + 30x2 = 4500. [6 Marks] 1/4 3/4 in which she is i) ii) Set up the utility maximization problem for Pamela. Solve for quantity demanded for goods x and x2. [2 Marks] [5 Marks] iii) c) Distinguish between Laspeyres and Paasche Prices and Quantity indices. [4 Marks] d) Briefly discuss the following oligopoly market models. i) Cournot oligopoly [4 Marks] ii) Bertrand Oligopoly [4 Marks] a) Applying illustration where necessary show how the preferences for perfect substitutes, perfect complements and Cobb-Douglas behaviour. b) Using the Pamela Cobb-Douglas utility function xx facing a budget constraint of 20 + 30x2 = 4500. [6 Marks] 1/4 3/4 in which she is i) ii) Set up the utility maximization problem for Pamela. Solve for quantity demanded for goods x and x2. [2 Marks] [5 Marks] iii) c) Distinguish between Laspeyres and Paasche Prices and Quantity indices. [4 Marks] d) Briefly discuss the following oligopoly market models. i) Cournot oligopoly [4 Marks] ii) Bertrand Oligopoly [4 Marks]