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21. Oscar has preferences represented by U(x,y) = x-Sy-S. Assume l = $8, py = $4, and p,L increases from $1 to $4. A What

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21. Oscar has preferences represented by U(x,y) = x-Sy-S. Assume l = $8, py = $4, and p,L increases from $1 to $4. A What is Oscar's optimal bundle at the original price? B. What is Oscar's optimal bundle after the price increase? C How much of the change in demand for good it is due to the substitution effect? How much is due to the income effect? D. What are Oscar's compensating and equivalent variation? Be sure to interpret your result

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