Suppose that consumer has the following utility function: U(X,Y) = XY and Px = 1, Py = 4 and I = 720. Suppose now that Px goes up to 4. What is the magnitude of the substitution effect on good X? -90 180 -180
Suppose that consumer has the following utility function: U(X,Y) = XY and Px = 1, Py = 4 and I = 720. Suppose now that Px goes up to 4. What is the magnitude of the substitution effect on good X? -90 180 -180
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQ
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