Question: Hi, please provide full answer - for assignment very desperate. Is the following claim true, false, or ambiguous? Justify your answer. A consumer has the
Hi, please provide full answer - for assignment very desperate.
Is the following claim true, false, or ambiguous?
Justify your answer.
"A consumer has the utility function U (x1, x2) = x1 + 2 x2 . The price of commodity one is $2 and the price of commodity two is $1. The consumer's income is $20. If the price of commodity two rises to $2, then entire change in demand for commodity two is due to the substitution effect.
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