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9- (lpts) Consider a consumer with the utility function U (X ,Y) = Kile and suppose that the prices of goods and income level are

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9- (lpts) Consider a consumer with the utility function U (X ,Y) = Kile and suppose that the prices of goods and income level are given by p; = $2, pr = $3 and the income of consumer is I = $83!]. Suppose now that the price of good X has increased to px = $3. For the optimal consumption quantity of good X, calculate the substitution effect, the income effect, and the total effect of this increase in price of X. (Hint: First calculate tbe optimal consumption bundle for initial prices. Find the utility that tlic consumer obtains by consuming tbat bundle \"ten. nd the consumption bundle tbat provides the same utility with the new prices This will allow you iond the substitution e'ect. You can use this nding to obtain income eject (total effect = substitution eect + income afoot

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