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Take a consumer whose income is 32 and the utility function isx1+2(square root of x2). The price of good 2 is fixed at 4. The
Take a consumer whose income is 32 and the utility function isx1+2(square root of x2). The price of good 2 is fixed at 4. The price of good 1 decreases from 8 to 4. What are the income and substitution effects of this price change?
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