The utility function for two goods is u(21,2)- z? 2. The initial price per unit of good 1 is p = 1, and the initial price per unit of good 2 is p= 1. Consumer's income is m= 14. Suppose that the price of good 1 decreases to p- 0.5. What is the Hicks substitution effect Art - (. Pz. m') - (p. Pa, m)? Here m m'. Enter your numerical answer in the box provided (round your answer to 1 decimal place) Azt

The utility function for two goods is u(21,2)- z? 2. The initial price per unit of good 1 is p = 1, and the initial price per unit of good 2 is p= 1. Consumer's income is m= 14. Suppose that the price of good 1 decreases to p- 0.5. What is the Hicks substitution effect Art - (. Pz. m') - (p. Pa, m)? Here m m'. Enter your numerical answer in the box provided (round your answer to 1 decimal place) Azt

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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