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Computing Ordinary Demands a Cobb-Douglas Example So we have discovered that the most preferred affordable bundle for a consumer with Cobb-Douglas preferences U(x1,X2)=X1X2 s am bm (x1,X2) (a+ b)p(a+b)p2Computing Ordinary Demands - a Cobb-Douglas Example. So we have discovered that the most preferred affordable bundle for a consumer with Cobb-Douglas preferences U x x x x a b ( , ) 1 2 = 1 2 is ( , ) ( ) , ( ) . * * x x ( ) am a b p bm a b p 1 2 1 2 = + +
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