Question: Assume that U = ( x + 2 ) ( y + 1 ) , with P x , P y and M being prices

Assume that U=(x+2)(y+1), with Px,Py and M being prices per unit of good ?2 good
respectively,
y and income, respicutively.
a. Derive the effect of change in Px on equilibrium x.
b. Decompose it into substitution effect and income effect.
Assume that U=(x+2)(y+1), with Px,Py and M being prices per unit

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