Question: as the picture Question 5 (15 marks) Part a. (10 marks) Draw a diagram depicting the Slutsky decomposition for x1, assuming that: . x1 is

as the picture

Question 5 (15 marks) Part a. (10 marks) Draw a diagram depicting the Slutsky decomposition for x1, assuming that: . x1 is a Giffen good. * P1 increases. Part b. (5 marks) Is the income effect positive or negative in Part a, or that both cases are possible

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