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A consumer with u = 8x^(1/2)+ y has m = 80 and pays pX= 4, pY= 2. Next month pX= 2.Provide a labelled indifference curve
A consumer with u = 8x^(1/2)+ y has m = 80 and pays pX= 4, pY= 2. Next month pX= 2.Provide a labelled indifference curve diagram to illustrate and quantify the Hicksian SE (A to B) and IE (B to C). Derive the Marshallian demand curve and compute the change in consumer surplus. No diagram. The CV is equal to and ACS is equal to
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