Question: Suppose the demand function for x is = Px^ Py^ ^ Px is price of x , Py is price of y , M is

Suppose the demand function for x is

= Px^ Py^ ^

Px is price of x , Py is price of y , M is income

Where, , , and are parameters.

  1. Suppose x is a complement to good y. What restrictions does this impose on a parameter or parameters in the demand function?

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