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A consumer has a utility function equal to: U = 2X1 + X2 and faces prices P1 = 10 and P2 = 5. If this
A consumer has a utility function equal to: U = 2X1 + X2 and faces prices P1 = 10 and P2 = 5. If this consumer has CU100 What would be the change in the quantity demanded of the X2 good due to the substitution effect and what would be the change due to the income effect if the price of the X2 good increases to CU10? Perform the calculation using the Hicks and Slutsky methods
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