Question: 6 Suppose that consumer has the following utility function: U(X, Y) = x1/2y1/2 and Px = 1, Py = good X? 4 and I =

6 Suppose that consumer has the following utility function: U(X, Y)

Suppose that consumer has the following utility function: U(X, Y) = x1/2y1/2 and Px = 1, Py = good X? 4 and I = 720. Suppose now that Px goes up to 4. What is the magnitude of the substitution effect on 90 -180 180 O -90

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