Question: Time left 2:42:54 A consumer's utility function is x13X2. The consumer's budget is m=320 and the prices are initially p1=1 and p2=20. The price of

Time left 2:42:54 A consumer's utility function is x13X2. The consumer's budget is m=320 and the prices are initially p1=1 and p2=20. The price of good 1 then increases to p1'=2. What is Slutsky's income effect of this price change on the consumer's demand in good 1? of a. Axn=-30 O. b. Axn=-150 O. c. Ax,n=-90 O d. None of the other answers

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=+ d. The war makes U.S. consumers uncertain about the future, and the consumers save more in response.

=+ a. The U.S. government, fearing it may need to enter the war, increases its purchases of military equipment.

=+ c. The war makes U.S. fi rms uncertain about the future, and the fi rms delay some investment projects.