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Econ practice 8 Suppose a consumer's utility function is given by U(X,Y) = X*Y. Initially the price of X is Px = $16, and the

Econ practice 8

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Suppose a consumer's utility function is given by U(X,Y) = X*Y. Initially the price of X is Px = $16, and the price of Y is Py = $1. The consumer has $160 to spend, and they choose their optimal bundle. If the price of X falls to Px = $1, how much of the total change in the quantity demanded for X is due to the income effect? 60 O None of the other answers are correct. 20 O 40 15

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