Question
A consumer has a Cobb Douglas utility function U(x1,x2) =x 1/2 y 1/2 . The income is INR 80 and the prices of both the
A consumer has a Cobb Douglas utility function U(x1,x2) =x1/2y1/2. The income is INR 80 and the prices of both the goods are INR 2 and INR 1. If the price of first good falls from 2 to 1, calculate substitution effect and income effect for the consumer.
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
