(b) If the price of X falls to $2.50, while income and the price of Y stay constant, how much X will Zog consume?

(c) How much income must be taken away from Zog to isolate the Hicksian income and substitution effects (i.e., to make him just able to afford to reach his old indifference curve at the new prices)?

X S book.dvi X + _Workbook%20(1)%20(1).pdf the Income effect [Increased, reduced ) Ituuced mis demand by 10 bottles. 8.3 (0) Note: Do this problem only if you have read the section entitled "Another Substitution Effect" that describes the "Hicks substitution ef- fect". Consider the figure below, which shows the budget constraint and the indifference curves of good King Zog. Zog is in equilibrium with an income of $300, facing prices px = $4 and py = $10. 30 22.5 E 30 35 43 75 90 120 X rkbook.. . pdf O WE lenovo