Slutsky and Hicksian

[RichaS]

How to go about this

[Abhitesh]

The IC for u=3 will look like this
Now you can find slutsky and hicksian for various cases - px/py >2 ; 2>px/py>1/2 ; px/py<1/2 and also the equal cases.

[shiva]

Hi raghuram,
I can't see the diagram. if possible, can you post it again?

[Abhitesh]

Hi I am unable to upload the fig using this message box.
You can try drawing it yourself by joining following points with a straight line.
(0,3) --->(1,2) --->(1,1) --->(2,1) --->(3,0)

In other words, divide the commodity space(x>=0,y>=0) into three regions by drawing y=2x and 2y=x.
u=x+y if y>2x or y<x/2
u=min(3x,3y) if x/2<y<2x