Question: =+. In Section 8B.1, we assumed the utility function u1x1 ,x2 2 5 x1 0.1x2 0.9 for George Exxon as well as an endowment of

=+. In Section 8B.1, we assumed the utility function u1x1

,x2 2 5 x1 0.1x2 0.9 for George Exxon as well as an endowment of gasoline of 1,000 gallons. We then calculated substitution and wealth effects when the price of gasoline goes up from $2 to $4 per gallon.

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