A consumer has preferences over two goods represented by the utility function:

u(x,y)=min{x,y}

The agent is endowed with positive amounts of goods x and y, (e_x, e_y), respectively and faces prices p_x,p_y.

Assume e(x,y)=(10,10) and p_x=1. Calculate the substitution and income effects for goods x, y given a price in crease, p_x'=2.

(The substitution effect associated with a price change is the change in demand for a good assuming the individual has just enough money to purchase the bundle she originally chose before the price change)