Cindy consumes goods x and y. Her demand for x is given by x(p., m) 0.05m-5.15px....
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Cindy consumes goods x and y. Her demand for x is given by x(p., m) 0.05m-5.15px. Now her income is $419, the price of x is $3, and the price of y is $1. If the price of x rises to $4 and if we denote the income effect on her demand for x by DI and the substitution effect on her demand for x by DS. Find DI and DS? Show your work. Cindy consumes goods x and y. Her demand for x is given by x(p., m) 0.05m-5.15px. Now her income is $419, the price of x is $3, and the price of y is $1. If the price of x rises to $4 and if we denote the income effect on her demand for x by DI and the substitution effect on her demand for x by DS. Find DI and DS? Show your work.
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