Question: Darcy's utility function over goods x and y is u(x,y)=xy2. His income (M) is 90 and, initially, px=py=1. The rest of the questions refer to

Darcy's utility function over goods x and y is u(x,y)=xy2. His income (M) is 90 and, initially, px=py=1. The rest of the questions

Darcy's utility function over goods x and y is u(x,y)=xy2. His income (M) is 90 and, initially, px=py=1. The rest of the questions refer to this setup. Calculate the Hicksian income effect for x of the price increase Question 10 Now find the Slutsky substitution effect on x for the same price increase Question 11 Finally, find the Slutsky income effect on x for the price increase. Darcy's utility function over goods x and y is u(x,y)=xy2. His income (M) is 90 and, initially, px=py=1. The rest of the questions refer to this setup. Calculate the Hicksian income effect for x of the price increase Question 10 Now find the Slutsky substitution effect on x for the same price increase Question 11 Finally, find the Slutsky income effect on x for the price increase

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