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For U=xy; m=400; p y =2; p x 0 =2; p x 1 =1, calculate the substitution and income effect using: Slutsky decomposition Draw appropriate

For U=xy; m=400; p_y=2; p_x⁰=2; p_x¹=1, calculate the substitution and income effect using:

Slutsky decomposition

Draw appropriate diagrams showing budget lines, indifference curves and effects.

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