Question: Suppose that consumer has the following utility function: U(X, Y) = x1/zy1/2 and Px = 1, Py = X? 4 and I = 720. Suppose

Suppose that consumer has the following utility function: U(X, Y) =

Suppose that consumer has the following utility function: U(X, Y) = x1/zy1/2 and Px = 1, Py = X? 4 and I = 720. Suppose now that Py goes up to 4. What is the magnitude of the income effect on good 180 -90 90 -180

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