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Each week, Jane selects the quantity of two goods, X and Y, that she will consume in order to maximize her utility. She spends her
Each week, Jane selects the quantity of two goods, X and Y, that she will consume in order to maximize her utility. She spends her entire weekly income on these two goods. Suppose you are given the following information about the choices that Jane makes over a three-week period, where PX is the price of good X, PY is the price of good Y, and l is income: x Y Px PY I eek1 12 12 $2 $1 36 eek2 18 18 $1 $1 36 eek3 12 12 $1 $1 24 Identify the income and substitution effects with respect to good X that result from a change in the price of good X. When the price of good X decreases, Jane's substitution effect (in terms of good X) is D units of good X and her income effect is D units of good X. (Enter numeric responses using integers.)
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