Stephen has $147 to spend on goods x and y. His utility function is given by Utxy) min(Sx, 4y). The unit price of good y is $4. The unit price of good x is initially $4, but then changes to $10. What is the income effect of the price change on the consumption of good y? Enter a numerical value below. You may round to the second decimal if necessary. Include a negative sign if the answer involves a decrease in quantity.
Stephen has $147 to spend on goods x and y. His utility function is given by Utxy) min(Sx, 4y). The unit price of good y is $4. The unit price of good x is initially $4, but then changes to $10. What is the income effect of the price change on the consumption of good y? Enter a numerical value below. You may round to the second decimal if necessary. Include a negative sign if the answer involves a decrease in quantity.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 25SQ
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