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The Marshallian demand function for good x is given by: x = I/(2p x ).The compensated demand function for good x is given by: x

The Marshallian demand function for good x is given by: x = I/(2px).The compensated demand function for good x is given by: xc= [(py/px)U]1/2. The indirect utility function for this consumer choice problem is given by:V(px, py, I) = I2/4pxpy. In this example, the substitution effect for good x own-price change (as opposed to cross-price effect) is given by the following equation:-a(I/px2), where a is a constant. Constant a is equal to what

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