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Imagine you consume two goods, X and Y, and your utility function is U = X My ; Your budget is $180 and Px -

Imagine you consume two goods, X and Y, and your utility function is U = X My "; Your budget is $180 and Px - $2; Py = $3. So, the optimal bundle for you to consume is (45, 30). Now the price of good X increases to $6. The compensated price bundle is (25.98, 51.96). What is the income effect on X

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