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Imagine there are two goods, H and S. The utility function is: U = H 1/2 S 1/2 . At first, the price of H
Imagine there are two goods, H and S. The utility function is: U = H1/2S1/2. At first, the price of H is $6 and the price of S is $3. The budget is $18.
Now imagine the price of H decreases to $2. How much of good S do you consume now?
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