BRAC University ECO301, Spring 2011, WRK, HW1, Due by Wednesday, 23/02/11 Answer all questions (marks in parenthesis). The two-good Cobb-Douglas...

Studies have shown that richer families tend to have fewer children. If the expenditure function of one such family is e(p,u) and it’s “demand” for children is xj(p,y), where p is a vector of prices and y _0 is income, are children an inferior good? (10)