Question: Suppose that the indirect utility function of a consumer is u(p1,p2,I) = I(p 1 0,5 +p 2 0,5 ) -2 . Calculate the terms on

Suppose that the indirect utility function of a consumer is u(p1,p2,I) = I(p10,5+p20,5)-2.

Calculate the terms on the left hand side and on the right hand side of the Slutsky-equation and show that the two sides are equal.

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