Suppose we have a consumer with utility U(X,Y) = x2/5 y 3/5 What is X* and Y* if she has income M = $200 and faces prices Px=$4 and Py = $5. Suppose Px rises to $5. What is the Hicks Substitution Effect? Hicks Income Effect? Sketch the substitution and income effects of the rise in Px.

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