Question: Suppose that a consumer has an initial endowment of20.00eggs. He is able to sell these eggs freely on the market for $1.00 per egg, but

Suppose that a consumer has an initial endowment of20.00eggs. He is able to sell these eggs freely on the market for $1.00 per egg, but has no other income. However, he still demands some eggs himself. His demand is given by the following equation:

1=10.00+ /11

The price for eggs increases to $2.00 per egg. Calculate this consumer's endowment income effect.

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