Question: Anthony seeks to maximize the following utility function u(x, y) = x1/3y2/3 subject to the budget constraint pxx + pyy = I where px, py,

Anthony seeks to maximize the following utility function u(x, y) = x1/3y2/3 subject to the budget constraint pxx + pyy = I where px, py, x, y, I > 0.

e) When is a reduction in px better for Anthony than a reduction in py of the same size? Hint: use the envelope theorem

thank you!

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