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5. Melissa’s utility function for the bundle (x,y) is U(x,y)=xy. Price of good x is p1=1, price of good 2 is p2=2 and income m=10. If the price of good 1 goes up to p1=2, but the rest remain the same....

5. Melissa’s utility function for the bundle (x,y) is U(x,y)=xy. Price of good x is p1=1, price of good 2 is p2=2 and income m=10. If the price of good 1 goes up to p1=2, but the rest remain the same.

Derive: Total effect? Substitution effect? Income effect?

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5. Melissa’s utility function for the bundle (x,y) is U(x,y)=xy. Price of good x is p1=1, price of good 2 is p2=2 and income m=10. If the price of good 1 goes up to p1=2, but the rest remain the same....
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