Suppose the utility function is U(x,y)=xy. In 2021, Px=5, Py=5. Due to covid, the price of x in 2022 decreases to Px=2. Your income is I=200 unchanged in these two years. 1. What are the (approximate) substitution and income effects of this change in prices? 2. What kind of good is x (giffen good, normal good, inferior good)? explain.

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