Re: Daily question answer

Posted by Khushboo on Feb 15, 2009; 2:59pm
URL: http://discussion-forum.276.s1.nabble.com/Daily-question-tp2328964p2330004.html

1 - Marginal utility of goods is positive    

2 - By Slutsky method, substitution effect is 37.5 and income effect is also 37.5.
     By Hicks method, substitution effect is 43.933 and income effect is 31.06.

     So, total effect is same in both the methods i.e 75.