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Suppose that an individual has the following quasilinear utility function: ?(?1, ?2) = ln(?1) + ?2...

Suppose that an individual has the following quasilinear utility function: ?(?1, ?2) = ln(?1) + ?2 Show graphically the total effect, substitution effect and income effect when the price of good ?1 decreases (assuming there is an interior solution). Then derive Hicksian demand curves for ?1.(the sign in the utility function is positive)

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I given: Individuals Quasilinear utility function - UCR1, R2) = log (2) tuz - Assumption. There is an interior solution 1 giAB-> AB CD - Pivated Bullget Line By Substitution The entire change in demand is due to substitution effect = Total Effect D

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