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5)Suppose you perform a Slutsky decomposition of a decrease in price and find that there is no income effect. What would be an example of
5)Suppose you perform a Slutsky decomposition of a decrease in price and find that there is no income effect. What would be an example of a utility function and prices where this could be the case? Explain your answer with the aid of a graph. (Hint: think about the preferences we examined where the substitution between the two goods was key).
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