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#4 Suppose that u(X1, X2) = X1 X2 , P1 = 2, p2 = 4 and m=100. a) What are the demands for x1 and

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#4 Suppose that u(X1, X2) = X1 X2 , P1 = 2, p2 = 4 and m=100. a) What are the demands for x1 and x2? b ) How do the demand for x, and x2 change when p1 = 4? C) How much do we need to increase income by to allow the consumer to purchase the original demand for X1 from part (a) at the new prices? d) Decompose the change in the demand for X, from part (a) to part (b) into a substitution and income effect using the Slutsky approach

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